Community Health buys Hilton North for redevelopment

The Hilton Indianapolis North hotel along the Interstate 69 corridor on the northeast side of Indianapolis will close by the end of the year.

Community Health Network Foundation, which owns the nearly 9-acre parcel at the corner of 82nd Street and Shadeland Avenue, has exercised its right-of-first refusal to purchase the hotel from the current Hilton franchisee, the foundation announced Thursday afternoon.

Terms of the transaction were not disclosed.   

The foundation plans to hire a management firm to operate the hotel until it closes. In the meantime, a team from Community will begin planning a redevelopment of the land to meet the future needs of physicians and patients, the foundation said. The parcel is adjacent to Community Hospital North.

“Community’s north region continues to expand its reach and needs the physical space to meet the growing demands of the marketplace,” foundation president Joyce Irwin said in a written statement. “Opening up this prime area of real estate for health care services benefits the residents who live in the northern areas of central Indiana.”

The former Community Hospitals of Indiana, Inc. purchased land in the Castleton area in 1981, to develop a north campus for what is now Community Health Network. In 1985, Community Hospital North opened with 100 inpatient beds, emergency department and outpatient services.

Community North since has expanded to include a 42-bed neonatal intensive care unit, a maternity unit with 60 private patient suites, a heart and vascular hospital, rehabilitation hospital, and an oncology center.

The hotel site was transferred to the foundation in 1983 and later developed. The hotel was built in 1988 and opened as the Omni North Hotel. Norwalk, Conn.-based HEI Hospitality bought the hotel in 2004 and converted it to the Hilton brand in 2005 after a $5 million renovation. It was renovated again in 2010.

With 221 rooms, the hotel is the 19th largest in the Indianapolis area. It contains 12 meeting rooms and 4,558 square feet of exhibit space. 

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