Following an extensive $121-million renovation led by Keystone Group, the historic Illinois Building in downtown Indianapolis has reopened as the InterContinental Indianapolis, a 12-story luxury hotel that blends restored architectural elements with new design features.
Located on Market Street between Monument Circle and the Indiana State Capitol, the building occupies a prominent position in the city’s historic core. For Keystone Group founder Ersal Ozdemir, the building’s location and heritage were central to its redevelopment.
“This has been the heart of the city for over 100 years,” said Ozdemir. “It’s a beautiful historic building in a critical location—just steps from the Soldiers and Sailors Monument and the Capitol. These kinds of buildings are part of the identity of a city.”
The Illinois Building had faced years of vacancy and ownership complications before Keystone acquired the property. While the project presented logistical and financial challenges, Ozdemir said preserving the building’s character was non-negotiable.
“I love historic buildings,” he said. “It’s hard to replicate them. The facade, the terracotta on the roof, the bronze entry details—these are things that simply can’t be recreated today. We were committed to restoring them.”
Keystone restored much of the building’s original structure, including the ornate exterior and the lobby, which now features restored travertine walls, bronze elevator doors and new marble flooring. A former internal stairwell was replaced with a modern glass and marble staircase, topped by a 40-ft. chandelier.
“These types of renovations are complex and expensive,” Ozdemir noted. “You really have to have a passion for it. It’s much easier and cheaper to tear down a building and start from scratch, but that would erase an important part of the city’s story.”
Ozdemir, who grew up in Turkey surrounded by ancient architecture, said his appreciation for preservation was shaped by that experience. “In places like Turkey or across Europe, people visit not just for food or beaches, but for the architecture and history,” he said. “That gives cities their character. And I think that’s something Indianapolis should hold onto.”
In reimagining the building for modern hospitality use, Keystone also made substantial additions. A previously mechanical top floor was removed and replaced with a rooftop lounge and penthouse suite—now the highest of its kind in the state—with views of the monument and Capitol building. The hotel also features multiple dining outlets, including Hyde Park Prime Steakhouse and a second-floor restaurant, Serliana.
While some design elements reflect a contemporary approach, much of the hotel leans into a classic aesthetic. “We brought in large slabs of Italian marble, not because it’s trendy, but because it fit the character of the building,” Ozdemir said. “We wanted the interiors to reflect the history while still feeling fresh.”
The project is one of several downtown Indianapolis developments by Keystone Group, which has invested heavily in adaptive reuse and urban revitalization in the city. “We’re long-term owners,” Ozdemir said. “We don’t always make the most financially efficient choices, but we do what we believe adds long-term value to the city.”
He believes that projects like the InterContinental are important not only for tourism and hospitality, but for preserving the city’s architectural legacy. “A city full of new glass towers could be anywhere,” he said. “When you preserve buildings like this, you give the city its own fingerprint. That’s worth holding on to.”
