CooperWynn Capital has closed joint-venture equity financing for the acquisition and conversion of the 203-key DoubleTree Suites Detroit Downtown Fort Shelby on behalf of 6PM Hospitality Partners LLC. The historic property will be repositioned and rebranded as an Embassy Suites by Hilton upon completion of a comprehensive renovation expected to be substantially completed this year.
The transaction was capitalized through a multi-tranche structure pairing senior bridge debt with a preferred equity investment from a national institutional investor and sponsor common equity from 6PM Hospitality Partners.
“Conversion plays of this caliber require a capital stack engineered specifically to the business plan, not pulled off a shelf,” said Stan Kozlowski, principal, CooperWynn Capital. “Our role was to identify the right institutional preferred equity partner and structure the capitalization so that 6PM Hospitality Partners had the runway to execute the renovation and fully capture the operational upside associated with the Embassy Suites brand.”
Peter Beukema, CEO, 6PM Hospitality Partners, added, “Executing a transaction of this complexity required a financing solution that balanced flexibility, certainty of execution and long-term value creation. CooperWynn understood our business plan from day one and helped assemble a capital structure that allows us to move forward confidently with the Embassy Suites conversion and the property’s next phase of growth.”
Originally constructed in 1917 and listed on the National Register of Historic Places, the property was designed by Detroit architect Albert Kahn. The hotel underwent a restoration in 2008 as part of its repositioning under the DoubleTree by Hilton brand, followed by a refresh in 2023. The current renovation includes targeted upgrades across guestrooms, public spaces, food-and-beverage outlets and meeting spaces to align with Embassy Suites brand standards. Post-conversion, the property will operate as a 204-key, all-suite, full-service hotel and will be managed by 6PM Hospitality Partners.
“In today’s capital markets environment, preferred equity has become an increasingly important tool for executing conversions and value-add transactions,” added Marc Sallette, principal, CooperWynn Capital. “It allows sponsors to bridge the gap between senior debt proceeds and common equity while preserving flexibility to execute the renovation strategy and position the asset for long-term stability.”
The hotel is located in downtown Detroit, close to Ford Field, Comerica Park, Little Caesars Arena, the Fox Theatre, Huntington Place, the major downtown casinos and a growing roster of corporate headquarters and innovation campuses.
