Why GM is selling a large hotel next to its headquarters in downtown Detroit

DETROIT — The General Motors-owned Courtyard by Marriott hotel across from its Renaissance Center headquarters in downtown Detroit is for sale.

GM, which on Monday announced it plans to slash more than 14,000 jobs and idle five North American plants, confirmed its intention to sell the 265-room hotel that was built in 1985. 

“With the ongoing development of downtown, especially in the hotel and restaurant markets, GM has put this property on the market,” the company said in a statement to Crain’s Detroit Business on Tuesday. Crain’s is an affiliate of Automotive News.

A source briefed on the matter said GM hopes to fetch $45 million for the property. It’s not known whether that includes the 1,850-space parking deck, 30,000 square feet of retail and nearly 10,000 square feet of office space in the complex that the automaker owns. The company declined to elaborate.

In addition to the cuts announced Monday, the sale is another cost-cutting or revenue-generating effort by the automaker in the last 18 months. GM scrapped an eye-popping RenCen addition last year and halted renovations at facilities in suburban Detroit this month.

Riverfront Holdings Inc., a GM subsidiary, bought the hotel, parking deck, retail and office space that are part of the Millender Center from Forest City Enterprises Inc., of Cleveland, for $37.8 million in December 2010, Crain’s reported.

GM began leasing the Millender Center complex in 1998, two years after it purchased the Renaissance Center, which is also owned by Riverfront Holdings.