NEWS

A New Vision for Historic Paoli Hotel

Nonprofit group raising funds for rehabilitation of building on courthouse square

Nonprofit Springs of Hope in Paoli acquired the endangered Mineral Springs Hotel earlier this year and started an ambitious campaign to restore it as a boutique hotel. (Photo: Evan Hale)

Hope Springs

The future of Paoli’s shuttered Mineral Springs Hotel looks brighter after a newly formed nonprofit organization—Springs of Hope in Paoli, Inc.—acquired the landmark earlier this year and began taking steps to secure its future as a boutique hotel. With over half a million raised for the project, including a significant investment by Indiana Landmarks, Springs of Hope plans to stabilize the historic building starting this fall.

The iconic twin-towered, three-story structure has served as a dominant presence on Paoli’s National Register-listed courthouse square since its completion in 1896 by local businessmen hoping to boost tourism. To compete with the nearby French Lick and West Baden Springs resorts, the project piped local mineral waters for bathing directly into the hotel, as well as offering guests the luxury of electric lighting in each room, courtesy of a steam-powered generator in the basement, which also brought electricity to the town.

Mineral Springs Hotel, Paoli (Photo: Greg Sekula)

For decades, Mineral Springs Hotel served as the center of social and recreational life in the community, with an opera house in the lobby, a bowling alley and pool room in the basement, and later a Greyhound bus stop. Once boasting 80 guest rooms, hotel operations ceased in 1958, while portions of the ground floor and basement remained open until the early 2000s.

In recent years, however, prolonged vacancy took an increasing toll. When a March 2025 storm ripped off a temporary roof, the original light well in the center of the building and other portions of the roof stood exposed to the elements, accelerating deterioration and earning the site a second stint on Indiana Landmarks’ 10 Most Endangered list.

Mineral Springs Hotel, Paoli (Photo: Greg Sekula)

Mineral Springs Hotel, Paoli (Photo: Greg Sekula)

“With water seeping into the building and ensuing mold growth, the hotel needed an immediate savior,” said Greg Sekula, Indiana Landmarks’ Southern Regional Office director.

Enter Sean Salés, MD. A transplant to the area and a family physician with a love for history, Salés realized local intervention was necessary to save the beloved landmark. He gathered a group of local philanthropists to form a nonprofit and together they purchased the derelict building. In an early show of support, Indiana Landmarks supplied a small grant that helped the group hire New Albany architectural firm TowerPinkster to develop a stabilization and reuse plan for the building.

Mineral Springs Hotel, Paoli

Volunteers worked this summer on cleaning up the grounds of the hotel. (Photo: Courtesy Springs of Hope in Paoli)

Inspired by Springs of Hope in Paoli’s continued vision, Indiana Landmarks then committed $100,000 from our Endangered Places Fund to support the hotel’s restoration, the largest strategic investment we’ve made in a local partner for a specific preservation project. The investment is helping unlock $300,000 in matching local and state funds, and to date, Springs of Hope in Paoli has raised over $547,000 in public and private funds, allowing them to start repairs this fall.

“Our focus right now is to repair masonry at the parapet level and get a permanent roof on the building to stop the deterioration,” explained Salés. “We have a long journey ahead, but I am confident the community will step up and support this effort, particularly as bricks-and-mortar work begins later year.”

 

 

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