Terre Haute Approves $61 Million Mall Redevelopment
The Wabash River Regional Development Authority plans to transform a former Macy's store into a 160-room hotel.
Updated on Oct. 23, 2026 in Hotels
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The Wabash River Regional Development Authority has approved a $60.9 million plan to renovate the Haute City Center mall. The redevelopment will feature a new 160-room hotel located in the footprint of the mall's former Macy's store.
Why it matters
This project aims to revitalize the local retail space by converting vacant department store property into a hospitality hub. The redevelopment plan also includes rebranding the mall as The Mill at Honey Creek.
The new hotel project is designed to accommodate 21,120 room nights per year with a daily rate of $120. The transformation centers on the former Macy's facility at the existing Haute City Center property.
The players
Wabash River Regional Development Authority
This government entity oversees economic and infrastructure development projects across the region.
The details
The development authority authorized the multi-million dollar makeover to shift the mall's purpose toward mixed-use hospitality. The site will officially transition its identity to The Mill at Honey Creek as part of the broader site renovation.
Timeline
The development authority approved the redevelopment project on October 23, 2026.
Travel Outlook
The project follows the nationwide trend of adaptive reuse for vacant anchor department stores as commercial centers reconfigure their floor plans. This conversion mirrors shifts seen in other regions where suburban malls pivot toward hospitality to offset declining brick-and-mortar retail demand.
Travelers and locals can expect a new lodging option with nightly rates set at $120 once construction concludes. Visitors should monitor site progress to determine when the hotel will open for bookings.
The takeaway
This development represents a major strategic shift in how Terre Haute manages aging retail infrastructure. Residents and tourists alike should watch for how the rebranding affects local traffic and business occupancy at the new Mill at Honey Creek facility.
Further reading
For more information on local hospitality projects, see the Hotels section.
Live Poll
Do you support repurposing declining shopping malls into mixed-use hotel and entertainment centers in your area?
