Town House Motor Inn was the original name of the hotel known as Kelly Inn from 1988 until its 2019 closure. It was located on the northwest corner of Divide Avenue and State Street, across from the Capitol. It was the city’s second modern multi-purpose hotel facility, after the Holiday Inn. A Town House location also existed in Fargo.
Midwest Land Development Corporation announced the hotel in 1968 and commenced construction in 1969. It contained 104 guest rooms, a lounge, restaurant, and public facilities. It originally boasted an enclosed recreation “cone” with a glass-domed swimming pool, sauna, putting green, and game area. It opened in 1970.
The hotel, along with others locally, succumbed to the economic decline of the late 1980s and was foreclosed on in March 1988. Sioux Falls-based Kelly Inn acquired it in May of that year. After an estimated $1 million renovation, it re-opened under the Kelly Inn banner that fall. An affiliate of the company also owned Bismarck’s Sheraton Galleria at that time (now Radisson).
The former hotel building was demolished in January 2020. Its new owners haven’t announced firm plans for the site.
