Editorial: Springfield's most prominent hotel has become a millstone, with no solution in sight
Illinois' capital city wants to shore up its struggling downtown, but it has a problem that no one can miss.
Like a giant grain silo, the Wyndham Springfield City Centre hotel dominates the skyline, towering 30 stories above its prime location at 700 E. Adams St. This 369-room hotel with 27 apartments, hundreds of parking spaces, retail shops and a once-thriving Starbucks has stood empty since it flooded in the early morning hours of March 27, 2025.
No one can say when, or if, it might reopen.
The Wyndham is at the center of a bruising legal fight between owner Al Rajabi and his insurer. After the flood abruptly shut down the entire property, Affiliated FM Insurance Co. refused to pay Rajabi's multimillion-dollar claim, alleging fraud. Both sides agree that an act of vandalism occurred, though they sharply disagree over who was responsible.
On that fateful day last year, someone sent a torrent of water cascading from the upper floors, wiping out the hotel's passenger elevators and other crucial systems. The water got into the hotel's restaurants and banquet halls, rooms and apartments. With the fire alarms, sprinklers and water lines damaged, everyone had to evacuate.
And with that, Springfield's downtown took a body blow.
The hotel routinely hosted large groups, including those attending conventions at the Bank of Springfield Center across the street. Its abrupt shutdown threw longstanding bookings into disarray. Reservations were canceled and the visitor's bureau had to scramble to piece together contingency plans.
Fast-forward one year, and city, county and state officials are pushing legislation that would expand the convention center and help fund construction of a new hotel near the Wyndham site. Under the state bill, a new governing board would promote business development and tourism in Springfield and Sangamon County.
But a giant eyesore stands in the middle of that ambitious new plan. It's hard to imagine a successful redevelopment taking place until the Wyndham problem is resolved, though that is exactly what Springfield's boosters desire.
Alas, no resolution is in sight. Two months ago, Wyndham's Texas-based owner quietly put the hotel into bankruptcy in San Antonio, listing millions in unpaid debts.
Even if a new owner emerged for the property, court documents suggest that at least 12 to 18 months would be needed to rehab it. Demolition is a possibility as well, but not until the courts say so, and someone would have to pay for that, too.
Springfield is home to a beautiful capitol building and must-see destinations for fans of Abraham Lincoln. But realistically, its most prominent feature for a long time to come is likely to be an oversized, boarded-up hotel. Isn't this situation just so Springfield? Why is it that our state's seat of government is so often tainted by a whiff of scandal?
The legal battle between owner Rajabi and Affiliated resulted in alarming accusations. Rajabi filed suit last June, saying the insurer, acting in bad faith, had deliberately slow-walked his claim under a policy that is supposed to cover acts of vandalism
The insurance company, which conducted an independent investigation, fired back a couple of months later. Affiliated determined that the hotel damages were "intentionally caused" by Rajabi, who is accused of colluding with others to flood the place with the goal of cashing in on the insurance policy. The insurer's findings were based on testimony under oath from witnesses it named, as well as documents and other information, the company said.
The insurer also sought $4 million in reimbursement for a 2024 claim that Rajabi had made over an alleged lightning strike on the building. Affiliated says that, too, was fraudulent. In court documents, Rajabi denied involvement in any fraud and continued to seek payment for his claim. The FBI reportedly is investigating the incident.
Rajabi's lawyer in Illinois no longer represents him, and his bankruptcy lawyer in Texas did not respond to requests for comment. Neither did lawyers for Affiliated.
With any luck, the Wyndham water caper will be solved and the hotel's future sorted out. But don't expect anything to happen any time soon. Until then, if you happen to visit Springfield, try not to dwell on the 350-foot-tall tower poking up, uselessly, from the heart of downtown.
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This story was originally published May 18, 2026 at 5:16 AM.