This week, Chapel Hill is resuming talks for a proposed hotel development in its downtown.
With the proposal being located at the intersection of Rosemary Street and Columbia Street, the extended-stay hotel seeks to add life and vibrancy to the downtown corridor with 130 rooms, a rooftop bar, pocket park, and other amenities. The site currently consists of parking and commercial spaces and is near the Northside neighborhood.

Rendering for the proposed hotel, located along West Rosemary Street. (Image via MHAworks.)
On Wednesday, April 15, the Town Council will hold a public hearing for a new incentive agreement with Chapel Hill Ventures LLC. If approved, the town would provide 90 discounted parking spaces in exchange for creating nearly three dozen full-time jobs and activating the dormant street corner.
The incentive also aims to promote Chapel Hill’s economic development goals for diversifying the local economy, providing a new capital investment and bringing more traffic to local businesses. The plan aims to keep and potentially activate the former Chapel Hill Town Hall building, located at 100 West Rosemary Street and on the corner of the proposed site. Built in 1938, the building has also served as a police department, courthouse, and fire department.
Chapel Hill initially approved plans for the four-to-five story hotel in 2021, but the project has made few forward advances since due to “significant” cost-related disruptions, according to the town. Implementing feedback from the council at the time, changes made to the proposal during the former approval process included reducing the size of the building, providing a separation between the nearby residential homes, and reducing surface parking to encourage public transit use and pedestrian traffic downtown.
Those council members particularly praised the Rosemary-Columbia hotel for its location along the bus line and walkability to local food, shops, and UNC’s campus. The development also planned to complement many now-completed elements of the East Rosemary Redevelopment Project and the town’s vision for a downtown business district. That “innovation hub” adjacent to Franklin Street currently includes the East Rosemary Parking Deck and the Innovate Carolina Junction.
The public hearing will take place at the Town Hall Council Chambers located at 405 M.L.K. Jr Blvd. The Chapel Hill Town Council meeting is slated to begin at 6 p.m. on Wednesday.
Featured image via MHAworks.
Chapelboro.com does not charge subscription fees, and you can directly support our efforts in local journalism here. Want more of what you see on Chapelboro? Let us bring free local news and community information to you by signing up for our newsletter.
Related Stories
‹
![]()
Chapel Hill's Cell Phone Driving Ban Put On Hold The Chapel Hill Town Council voted 7-1 on Monday to delay implementation of the town’s ban on cell phone use while driving until October 1.

Chapel Hill Approves FY27 Budget with No Tax Increases; Will Revisit Library Funding, Greenways in FallThe unanimous vote approved the Town of Chapel Hill to operate on a $170 million budget for the upcoming fiscal year, a slight increase.

Here Are the Orange County Local Governments’ Approved Budgets, Tax Rates for 2026-27The final totals and changes for Orange County governments' budgets are being finalized. Here are the details of each approved so far.

As Chapel Hill Library Weighs Options Amid Possible Funding Cut, Supporters Speak Up to CountyAfter receiving more than $620,000 annually from the Orange County government, the Chapel Hill Public Library may soon lose that funding.

Blue Sky Robotics Expanding Chapel Hill Headquarters, Moving to Rosemary StreetBlue Sky Robotics, which has been headquartered in downtown Chapel Hill since its founding in 2023, will be moving to the Innovate Carolina Junction building at 136 East Rosemary Street. The company is currently located in the Hill Commercial Building on 142 East Franklin Street. In a presentation to the Chapel Hill Town Council Wednesday […]

No Tax Increases and Increased Spending Featured in Chapel Hill Staff's Proposed FY27 BudgetFollowing a year with improved revenues and a new town manager at the helm, the Town of Chapel Hill may go into the next fiscal year without a tax increase or significant cuts.

Impassioned Public Comment Leads Chapel Hill Town Council to Drop Discussion of DownsizingA discussion by the Chapel Hill Town Council about trimming its seats and extending the length of mayoral term was met with swift, vocal opposition during a public hearing last week.

Orange County Clerk of Court Mark Kleinschmidt Wins State, National HonorsOrange County Clerk of Superior Court Mark Kleinschmidt has been recognized with two awards – one statewide and one national – in recognition of his service. Kleinschmidt received the North Carolina Guardianship Association’s Trailblazer Award last week in Asheville, recognizing his two terms as Clerk of Superior Court and Probate Judge. In legal terms, guardianship […]

Climate Action, A New Hotel and Downsizing Council? Highlights from Chapel Hill Town Council's Apr. 15 MeetingThe Chapel Hill Town Council held its first official business meeting of the month on Wednesday, Apr. 15 to cover a full agenda — which included discussing affordable housing funding, ongoing climate action efforts, parking incentives for a hotel project, and more.

Chapel Hill to Resume Conversations for West Rosemary Street Hotel With Public HearingThis week, Chapel Hill is resuming talks for a proposed hotel development in its downtown along West Rosemary Street.
›