PAOLI — The future of Paoli’s shuttered Mineral Springs Hotel is looking brighter after a newly formed nonprofit organization, Springs of Hope in Paoli, Inc., acquired the landmark earlier this year and launched an ambitious campaign to secure its future as a boutique hotel.
More than $547,000 has been raised in public and private funding—including a major financial investment from historic preservation group Indiana Landmarks—Springs of Hope plans to begin critical stabilization repairs on the historic structure this fall.
A Storied History on the Courthouse Square
Completed in 1896 by local businessmen aiming to boost regional tourism, the iconic twin-towered, three-story building has long been a dominant presence on Paoli’s National Register-listed courthouse square.
To compete with nearby resort destinations in French Lick and West Baden Springs, the hotel originally piped in local mineral waters for guest baths. It also featured electric lighting in every room powered by a steam-powered basement generator—an innovation that brought electricity to the town of Paoli for the first time.
For decades, the Mineral Springs Hotel functioned as a focal point for local social and recreational life. At various times in its history, the 80-room property housed an opera house in the lobby, a bowling alley and pool room in the basement, and later served as a Greyhound bus stop.
While primary hotel operations ceased in 1958, portions of the ground floor and basement remained active with local businesses until the early 2000s.
Rescuing an Endangered Landmark
Years of vacancy took a severe toll on the structure, culminating in severe storm damage in March 2025 that blew off a temporary roof. The collapse exposed the central light well and interior structures to rain and weather, accelerating deterioration and placing the property on Indiana Landmarks’ “10 Most Endangered” list for a second time.
“With water seeping into the building and ensuing mold growth, the hotel needed an immediate savior,” said Greg Sekula, Southern Regional Office director for Indiana Landmarks.
Recognizing the urgent threat to the historic property, Dr. Sean Salés, a local family physician with a passion for history, spearheaded a community effort to buy and rehabilitate the property. Salés assembled a coalition of local philanthropists to establish the nonprofit Springs of Hope in Paoli, Inc., which subsequently purchased the derelict building.
Funding and Next Steps
Early assistance from Indiana Landmarks provided a seed grant that allowed the nonprofit to retain New Albany architectural firm TowerPinkster to craft a comprehensive stabilization and adaptive reuse plan.
To further momentum, Indiana Landmarks committed $100,000 from its Endangered Places Fund—the organization’s largest strategic investment ever made to a local partner for a single preservation project. That grant helped unlock an additional $300,000 in matching local and state support.
Supported by community volunteers who spent the summer clearing debris and landscaping the grounds, the organization is now transitioning into structural repairs.
“Our focus right now is to repair masonry at the parapet level and get a permanent roof on the building to stop the deterioration,” Salés said. “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.”
