Tranzon will conduct the auction of the 413-room hotel. The hotel is being sold "as is" with all of the furniture and equipment on the site. The closing of the sale will be required to take place within 15 days of the auction, according to the auction terms.
Dallas-based Highgate Holdings has owned the property for several years. It is unclear what might happen to the hotel if it is not sold. A minimum bid price has not been stated.
The Pontch, as it has been known to locals for decades, was built in 1965. When it opened, it was the first new major hotel in Downtown since the 1920s. Each room in the hotel has a view of the Detroit River.
The 25-story hotel includes about 308,000 sf. The building features about 13,500 sf of conference and meeting space and has a parking garage of 170 spaces. The hotel has struggled for years in a weak Downtown hotel market, doing its best business when the annual North American International Auto Show is in operation at Cobo. With a possible renovation and expansion of Cobo Center in the works, the availability of hotel rooms in walking distance, such as at the Pontch, are considered vital to Cobo.
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