KHP Capital Partners is planning to convert the historic Johnston Building into a 245-room hotel with a fine-dining restaurant and coffee shop on the first floor, a ballroom, conference room and rooftop bar. The building is just over 100 years old. Last year, KHP bought it from Spaulding & Slye Investments for $19.3 million.

Due to the building’s age, KHP hopes to land federal historic tax credits from the National Park Service. Buildings that qualify for federal historic preservation tax credits receive 20% of the rehabilitation’s qualified expenses.

Demolition has begun on the building’s interior, and construction will ramp up this spring. The project is expected to deliver in the summer of 2026.

It’s just the latest office-to-hotel conversion the firm has completed. The Charlotte Business Journal reports that KHP says it’s invested $1.25 billion in renovating existing hotel properties and rehabilitating other obsolete real estate into boutique hotels. Its portfolio includes projects in Philadelphia, Washington, D.C., Chicago and Portland, among others.