Hotel bars often struggle to attract local patrons. At the AC Hotel Ann Arbor, creating a neighborhood gathering place was part of the plan from the beginning.
For Beverage Director Casey Miller, the goal was to turn the AC Lounge into more than a stop for travelers looking for a quick drink before heading to their rooms. Instead, the team designed the space as a community hub, drawing locals and visitors together around cocktails, food and recommendations that connect people more deeply to Ann Arbor.
"It was heartening to hear that the system is working as intended," Miller said after learning that both local residents and hotel guests were using the lounge as a pre-dinner gathering spot.
A European-Inspired Gathering Place
The AC Hotels brand places unusual emphasis on beverage service. In fact, General Manager Ryan Wilkins noted that the brand refers to its operation as a "beverage and food" program rather than a food-and-beverage program.
That philosophy influenced the design of the lounge from the outset.
Without a traditional concierge desk, the bar serves as both a social hub and an information center. Guests can learn about local restaurants, attractions, nightlife and hidden gems directly from bartenders who know the city firsthand.
"It's a meeting point. It's a meeting space. It's a spot to get your bearings once you've shown up," Miller said.
The team also intentionally priced the menu to remain accessible to local residents rather than focusing exclusively on hotel guests.
Local Sourcing Creates Authentic Stories
One of the lounge's biggest differentiators is its use of local ingredients.
Miller has developed cocktails featuring products from Michigan suppliers and Ann Arbor-area businesses, including specialty teas, spirits and other ingredients that give bartenders opportunities to tell guests stories about the community.
One signature low-ABV cocktail incorporates four local ingredients and references the businesses that supply them directly on the menu. The beverage includes tea sourced from a local producer and spirits from Michigan makers.
Rather than simply adding local products to check a box, Miller said the team selects ingredients they genuinely admire and use because they enhance the drinks.
"We're truly excited to involve these partners because we love their products too," Wilkins said.
The approach creates natural conversation opportunities. Bartenders regularly point guests toward the local businesses featured in the cocktails, encouraging visitors to explore nearby shopping districts and neighborhood destinations.
Collaboration Over Competition
While some hospitality operators view local bars as competitors, the AC Lounge takes the opposite approach.
Miller, a longtime Ann Arbor bar professional, believes partnership strengthens the local hospitality ecosystem.
"We've always favored collaboration over competition," he said.
Before the hotel even opened, the team worked with nearby bars and restaurants on social media collaborations and marketing efforts. Management also built relationships with dozens of local businesses, creating a network that continues to drive referrals and awareness.
The philosophy extends to guest recommendations as well. If visitors are looking for a specific experience, bartenders regularly suggest other local establishments, helping showcase the broader Ann Arbor dining scene instead of trying to capture every dollar within the hotel.
Elevating the Guest Experience
To deliver a more premium cocktail experience, the lounge abandoned the traditional division between servers and bartenders.
Instead, all front-of-house beverage employees are trained as bartenders, allowing guests at both tables and the bar to benefit from the same level of cocktail knowledge and hospitality expertise.
The team has also introduced interactive service touches, such as presenting smoked cocktails tableside rather than preparing them entirely behind the bar.
Miller said these details help create a more engaging experience while showcasing the team's passion for hospitality and craft beverages.
Food Evolves Alongside the Beverage Program
Although cocktails remain central to the concept, food has become an increasingly important part of the operation.
The menu draws inspiration from the AC brand's Spanish roots while incorporating flavors and formats familiar to Midwestern diners. One recent example is a Spanish-inspired burger developed specifically for the Ann Arbor market.
According to Schultz, that balance between brand identity and local relevance continues to shape menu development.
The result is a hotel lounge that functions less like a traditional hotel outlet and more like a neighborhood destination, one built on local relationships, storytelling and hospitality.
"The difference is we give a shit," Miller said. "The program only works if you have the people willing to share that passion with guests."