For over half a century, the round Holiday Inn at 320 Hillsborough Street has been a distinctive feature of the Raleigh skyline. However, this landmark, described by some residents as both iconic and an “eyesore,” is slated for demolition by a New York-based developer. The planned redevelopment signals a significant shift in downtown Raleigh, making way for a contemporary mixed-use tower.
Raleigh resident Jonathan Debruho captured the sentiment of many locals, stating, “It’s one of these weird buildings that just kind of exists in Raleigh. That’s very charming in a lot of ways.” Despite its charm and recognizable presence, developers are moving forward with plans to replace the Holiday Inn Raleigh Downtown Hillsborough Street with a modern 20-story structure. This new development is set to include hotel rooms, apartments, and retail and restaurant spaces, envisioned as a sleek glass tower.
Mick Walsdorf, CEO of Tidal Real Estate Partners, highlighted the driving forces behind this project, stating, “We are very excited about the strength of the Raleigh market and the opportunities it presents. There remains a strong demand for more high-end hotel rooms and additional housing downtown.” This development aims to cater to the growing demand for luxury accommodations and modern living spaces in the heart of Raleigh.
Aerial view of the Holiday Inn Raleigh Downtown Hillsborough Street and surrounding downtown Raleigh.
Demand for Upscale Amenities Drives Downtown Raleigh Development
Walsdorf emphasized the need for more upscale options in Raleigh, noting that the city has lagged behind comparable cities in providing “luxury lifestyle” amenities. “We intend to deliver a hotel product that will be amongst the best in the entire southeast and what we hope will become a centerpiece for downtown and home away from home for Raleigh residents,” he explained.
Dennis Edwards, president of the Greater Raleigh Convention and Visitors Bureau, echoed this sentiment, pointing to the city’s need for luxury hotels to support the Raleigh Convention Center. “Our visitors nowadays like new and shiny hotels,” Edwards commented. “We turn away bids every day literally from our sales department just because we don’t have the amount of room, hotel inventory they desire and want.” Currently, downtown Raleigh boasts nine hotels with 1,777 rooms, with an additional four under construction. The new glass tower at the Holiday Inn Raleigh Downtown Hillsborough Street site is projected to add 536 rooms to the downtown inventory, with an estimated completion date in late 2025 or early 2026.
Panoramic 360-degree view from the top of the Holiday Inn Raleigh Downtown Hillsborough Street, showcasing the Raleigh cityscape.
The “Spinning Hotel” Legend and Legacy of a Raleigh Landmark
Constructed in 1969 on Hillsborough Street, the Holiday Inn Raleigh Downtown Hillsborough Street has been a significant architectural and cultural landmark in Raleigh. This cylindrical building was the second of its kind in Raleigh, following Harrelson Hall on the NCSU campus. The Holiday Inn became the subject of a popular local legend, particularly for those who frequented it in the 1970s and 80s. Rumors circulated that the top floor, offering near 360-degree views of downtown Raleigh, used to “spin.” This joke evolved into a widely believed legend, with newer residents often questioning if the building ever actually rotated.
In 2019, management at the SKYE Tower, the Holiday Inn’s location, clarified the myth during a history tour. They confirmed that while this Holiday Inn never spun, it was inspired by “sister” towers that did incorporate a rotating feature to enhance city views. Despite not rotating, the Holiday Inn Raleigh Downtown Hillsborough Street provided a unique vantage point, allowing guests and visitors to appreciate expansive views of downtown Raleigh from 20 stories high, including historic churches, Dix Park, Fayetteville Street, and the State Capitol.
