East Michigan News

Legislation introduced by State Representative Bill G. Schuette has advanced in the Michigan House, aiming to support small business growth within the state's hospitality sector.

Boutique hotels have seen increased popularity across Michigan, but many owners and entrepreneurs face obstacles when trying to open establishments with bar areas in major cities such as Detroit and Grand Rapids. These challenges stem from existing rules set by the Michigan Liquor Control Commission that require hotels to meet certain room and population thresholds before being eligible for liquor licenses.

“These hotels bring upscale and personalized hospitality to Michigan’s beautiful lakeshore, forests and urban centers,” Schuette said. “We have destination cities in Michigan. Our communities are experiencing exciting energy in tourism and economic development, and this plan will get government out of the way of innovative job creators and entrepreneurs that are driving growth in our state’s largest cities.”

Currently, a hotel must have at least 50 rooms to qualify as a Class A or B hotel for a liquor license, which increases both capital costs and space requirements for new businesses.

House Bill 4700 proposes changes to the Michigan Liquor Control Code by lowering the minimum room requirement from 50 to 20 rooms for hotels seeking Class A or B status. The legislation received broad bipartisan backing in the House and will next be considered by the Senate.