Saving the 'Hair Curler': How a $36M Bet Redefined Raleigh's Skyline

RALEIGH, N.C. – October 01, 2026 – In an era where urban development is often synonymous with the wrecking ball, a different kind of architectural story is unfolding on Hillsborough Street. The newly opened Hotel Indigo Raleigh, a $36 million adaptive reuse project, has officially transformed one of the city's most polarizing mid-century structures into a luxury lifestyle destination.

Originally built in 1969 as a Holiday Inn and affectionately (or sometimes derisively) known by locals as the "Hair Curler" due to its distinctive scalloped, circular facade, the building was teetering on the edge of demolition just a few years ago. Today, it stands as a testament to the economic and cultural viability of historic preservation, opening its doors as the first property from its global parent brand's luxury and lifestyle portfolio in downtown Raleigh.

For years, the hospitality industry has chased the "new"—sleek glass towers and hyper-modern amenities. But as travelers and locals alike increasingly demand authenticity, the tangible impact of preserving a city's architectural quirks is proving to be a formidable bottom-line strategy. This 204-room boutique hotel doesn't just offer sweeping views of the city skyline; it offers a masterclass in how to engineer a profitable public living room out of a 1960s relic.

Reinventing a Mid-Century Oddity

The path from aging motor inn to luxury boutique hotel was anything but guaranteed. When the current ownership group acquired the property in 2021, initial blueprints called for razing the site entirely to make way for a contemporary mixed-use tower. It was a standard real estate playbook: maximize square footage, minimize structural complications.

However, in a significant pivot in mid-2025, developers recognized the latent value in the building's unconventional architecture. Rather than erasing a piece of Raleigh's skyline, they opted for a comprehensive $36 million transformation. By December 2025, the Raleigh City Council officially designated the circular tower as a Raleigh Historic Landmark, cementing its protected status and ensuring its distinctive scalloped exterior would remain intact for future generations.

The structural adaptations required to modernize a cylindrical building were immense. The interior architecture, spearheaded by a New York City-based design firm, had to completely reimagine the curved footprint. The resulting aesthetic pairs sculptural forms and geometric patterns with bold colors and polished chrome accents. Custom built-in furnishings were essential to navigate the non-standard room shapes, while warm oak finishes were integrated to reference Raleigh's identity as the "City of Oaks." To further ground the property in its local context, regional artwork was meticulously curated to reflect the area's artistic spirit.

The Economics of Preservation Over Demolition

Beyond the aesthetic triumph, the revitalization of the "Hair Curler" is a story of rigorous financial engineering. The $36 million renovation was part of a broader $71 million capitalization of the property, backed by a $49 million construction loan from a major New York lender.

Making the math work on such a complex adaptive reuse project required leveraging significant municipal and state incentives. By securing historic landmark status, the property became eligible for a 50 percent property tax deferral. Furthermore, the development capitalized on North Carolina's state historic preservation tax credits, which offer a 15 percent credit for projects up to $10 million, and a 10 percent credit for expenses between $10 million and $20 million.

These financial mechanisms highlight a crucial reality in modern commercial real estate: preservation is not just a philanthropic endeavor; it is a highly incentivized economic strategy.

"Hotel Indigo Raleigh represents a meaningful investment in one of downtown Raleigh’s most recognizable landmarks and in its future as a place that brings people together," said Daniel del Olmo, president and CEO of the Denver-based management company overseeing the property. "We look forward to welcoming guests and the Raleigh community to an experience that honors the building’s legacy, reflects the character of this city and enriches lives for years to come."

Engineering a Public Living Room

One of the most critical shifts in the hospitality sector over the last decade is the realization that a hotel cannot survive solely on transient out-of-town guests. It must become a fixture of the local neighborhood. The redesign of the Hillsborough Street property tackles this by deliberately engineering spaces that invite local foot traffic.

Through selective demolition on the ground floor, developers transformed a series of fragmented, dark areas into an expansive, light-filled community lounge. Perhaps the most striking addition is the outdoor courtyard, which replaced the original 1960s car-centric drive-up entrance. The space now features a vintage Airstream coffee bar, creating an inviting social hub that directly engages with the pedestrian energy of Hillsborough Street.

This activation of the streetscape serves a dual purpose. It integrates the property into the daily routines of downtown workers, university students, and local residents, while providing hotel guests with an immediate, authentic connection to the city.

"This building has been part of Raleigh’s story for generations, and we’re incredibly proud to welcome guests and our neighbors back through its doors," said Carlos Faz, General Manager of the new property. "Our goal is for the hotel to feel like a true community gathering place—somewhere travelers can experience the spirit of Raleigh and locals can meet for coffee, enjoy dinner and cocktails at High Ground, or celebrate life’s important moments."

A Catalyst for Downtown's Next Chapter

The opening of this boutique property arrives at a pivotal moment for Raleigh's urban core. The city is currently undertaking a massive $400 million expansion of the Raleigh Convention Center campus, a move that is expected to drive significant increases in both corporate and leisure travel.

To capture this high-end market, the hotel has introduced the High Ground Lounge on its 20th floor. Billed as the highest rooftop cocktail bar in downtown Raleigh, the venue pairs panoramic views of the skyline with elevated Southern cuisine and craft cocktails. This isn't just an amenity for hotel guests; it is a strategic play to dominate the local luxury nightlife and private event sector, competing directly with the city's established high-end dining venues.

By combining a massive financial investment, strategic use of historic tax credits, and a deep understanding of modern urban design, the developers have done more than just save an old building. They have proven that the most innovative path forward often involves looking back, transforming a mid-century oddity into a cornerstone of Raleigh's economic and cultural future.