Raleigh's circular Holiday Inn will get a makeover rather than demolition

• In 2022, Tidal said it planned to replace the hotel with a tower that included both a Kimpton Hotel and apartments, but the plans have been on hold for years.

Driving the news: Now, Tidal has temporarily closed the hotel while it plans to renovate the Holiday Inn into a Hotel Indigo, a brand owned by IHG Hotels and Resorts, according to a spokesperson for the company.

• In addition to Asheville and Winston-Salem, this will be North Carolina's third Hotel Indigo, a boutique hotel brand known for incorporating local flavor into its design.
• A spokesperson for Tidal said more information about the renovation would be available in the coming weeks.
• The Triangle Business Journal first reported the change in direction for Tidal.

What they're saying: Tidal representatives were not available for an interview but Ken Copeland, the company's president, said in a statement that Tidal was "excited to bring Downtown Raleigh the true lifestyle boutique hotel it deserves, and to do so by restoring an iconic Raleigh landmark into the modern era."

The big picture: Tidal is just one of several developers who have had to delay or change plans in recent years, as interest rates and costs have gone up and a surge in new apartments has made some projects less attractive to investors.

• This week, the city of Durham, for example, is debating ending a relationship with a developer to transform its old police headquarters due to surging costs and expectations around the project.

Go deeper: The Triangle's large real estate projects that are stuck in limbo