DoubleTree Foreclosure – Bay City takes $6.2m loss, looks ahead

Bay City officials assert that despite the foreclosure of the DoubleTree Hotel, the investment significantly benefited the local economy, generating over $8 million in revenue and fostering downtown revitalization, with new ownership expected to maintain its positive impact.

Bay City officials say investment in DoubleTree Hotel paid off over time despite foreclosure and loss of lower-tier bond repayment.

Bay City Responds to Hotel Foreclosure With Economic Perspective

BAY CITY, Mich. — In a press release yesterday, the city noted that despite losing out on millions invested in the DoubleTree by Hilton Hotel, Bay City leaders say the development served its purpose: boosting the city’s economy and revitalizing the downtown riverfront.

The hotel, a major anchor in Bay City’s riverfront redevelopment strategy, was sold at a Bay County Sheriff’s Office auction on March 28 to BCM Hotel LLC. The sale followed the decision by Saybrook LLC, a private equity firm and majority stakeholder, to exit its investment through its entity Bay City Hotel LLC.

City officials confirmed that Wenonah Park Properties Inc., the nonprofit that helped fund and oversee the hotel, will dissolve after the ownership transition is finalized.

DoubleTree Project Was Decades in the Making

The City Commission formed Wenonah Park Properties Inc. in 2001, leveraging a $4 million loan and public bonds to help bring the hotel to life. In total, Bay City contributed $6.7 million to the project over two decades.

City Manager Dana Muscott defended the investment in a prepared statement:

“The DoubleTree was a catalyst in the revitalization of downtown Bay City. Over 20 years ago, the City had the foresight to welcome a beautiful hotel to the area which spurred new business and workforce development.”

While the city will not recoup its loan, Muscott emphasized that returns came in other forms. Since its opening in 2009, the hotel has generated $8.3 million in city revenue, including property taxes, utility payments, and debt millage collections.

Foreclosure Impact: Losses, But Also Long-Term Gains

Officials acknowledged that the hotel’s sale price did not satisfy the senior bond debt held by Saybrook LLC. As a result, Bay City’s lower-tier bonds will not be repaid. Despite this, the city underscored that it was never on the hook for the hotel’s mortgage or operational debts.

The foreclosure stems from Saybrook’s decision to exit the investment, a common practice for private equity firms aiming to monetize assets after reaching a financial threshold. With the auction completed, BCM Hotel LLC is expected to take over full ownership, with the hotel continuing normal operations and retaining its staff.

DoubleTree Continues to Drive Regional Tourism and Spending

According to city estimates, the DoubleTree Hotel and conference center accounted for $15 million in direct guest spending across the region in 2024 alone. That figure includes spending on food, entertainment, transportation, and lodging-related services, all supporting local businesses.

Bay City’s waterfront, once dotted with aging structures, is now home to event venues, restaurants, and small businesses. Officials credit the hotel as a “community connector” that continues to serve both residents and out-of-town guests.

Muscott remains optimistic:

“The DoubleTree’s positive economic impact on the region will continue under new ownership. Its location in the heart of the riverfront positions Bay City to be a destination that’s attractive to residents, entrepreneurs and visitors.”

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