Conversion of downtown’s King Cole building into hotel set to resume

The development group that since 2019 has sought to convert a historic downtown Indianapolis office building just south of Monument Circle into a hotel plans to resume work on the project in the spring.

Ridgeline Development Partners, a subsidiary of Chicago-based hospitality design and development firm The Gettys Group, plans to resume redevelopment work on the planned 116-room Motto by Hilton hotel at 1 N. Meridian St. in the second quarter.

Indy Propco LLC, a Gettys and Ridgeline affiliate that has owned the 11-story building since early 2019, on Wednesday evening received a two-year extension on the project’s certificate of appropriateness from the Indianapolis Historic Preservation Commission. The certificate—which expired in 2023—allows for the redevelopment of a historically significant building. The extension was approved unanimously by the commission, with one abstention.

The update follows years of delays that company officials said were caused by challenging economic conditions and rising costs of construction.

“Costs have risen across the board, particularly in the construction industry,” Rob Hunden, spokesperson for The Gettys Group, said in emailed responses to questions from IBJ. “This has caused our investment in the project to rise, but we are confident in the project and its current economics.”

When it was first announced pre-pandemic, the conversion of the historic King Cole building was expected to cost $21 million. By 2022, the projected cost had ballooned to $54 million.

Hunden told IBJ that while the group is hesitant to share new cost expectations given the fluidity of the construction market, it expects the price tag to be “10% higher than before,” which would put it close to $60 million.

“Like any development, economic conditions changed during the pandemic,” Hunden said. “Debt markets have recovered since then and we are excited to be moving forward with the project.”

The company has said for years that it still believes in the project and is confident the property will perform well in the convention-friendly downtown hotel market. It doubled down on that perspective in an answer to IBJ’s inquiry about why it sees Indianapolis as being a market worthy of investment.

“The city of Indianapolis has done a fantastic job in attracting new business and growing the tourism industry. They have a vibrant sports scene, a world class convention center and continue to be an affordable destination for group and leisure travelers,” the company said.

Gettys’ current timeline would see completion of the hotel by the fourth quarter of 2026, roughly seven years after the project was first announced. The hotel is expected to retain the Motto flag, but new plans call for some changes to the dining offerings.

The development will maintain a rooftop bar and restaurant overlooking Monument Circle, as well as a street-level cafe, but Gettys and Ridgeline now expect to add a bar and lounge at the street level, likely in the space previously occupied by Qdoba, which closed in late 2024. The basement level could also be reconfigured into a high-end restaurant.

Prominent architectural firm Vonnegut Bohn & Mueller designed the historic building, which was built in 1915 and originally known as the Kahn Tailoring Co. Building as headquarters of one of the largest tailoring firms in state.

From 1929 to 1957, a restaurant known as the Seville Tavern operated in the building’s basement, followed by well-known upscale restaurant King Cole. Although that restaurant closed in the mid-1990s, the property is still known as the King Cole building.

Gettys, which received approval for $9.2 million in tax-increment financing bonds from the city in 2022, also anticipates using federal historic tax credits for the project.

“We are more than excited to get this project rebooted and moving forward,” the company said. “We are grateful to the City of Indianapolis for the commitment to the project and cooperation through the entire process.”