HIGH POINT, N.C. (WGHP) — It was once the focal point of downtown development in High Point. Now, the former Red Lion Hotel sits empty and vacant. Since 1985, Tab Rahim has owned Tab Rug and Furniture Gallery located on South Main Street in High Point. Right next door is what used to be the former Red Lion Hotel. It closed in June 2020 after the former owner filed for bankruptcy. Today, it's a building with 252 vacant rooms, with The Phillips Collection, a High Point-based luxury furniture brand, renting out retail space on the bottom floors. Rahim says the closure of the hotel has hurt his business and many neighboring businesses. "It was very convenient for the customers and for people who come from out of state. And if they're staying here, they would spend money around here and it's easy for them to walk around. I don't know why they changed it," Rahim said. Visit High Point President Melody Burnett says real estate company Mayfair Street Partners took over the property with plans to renovate the hotel. But ultimately, the developer pulled the plug. "Because of interest rates. The interest rates have been relatively high for hospitality projects," Burnett said. Burnett says the interest rates in downtown High Point range anywhere between 5% and 15%.She says once those rates go back down, she believes the vacant hotel will be more attainable for developers. "We do think that if it is a multipurpose project and that's exactly what the previous developers were imagining. Anything that can make it year-round, conducive to the needs of our High Point Market that brings in 75,000 people. We have High Point University that brings in well over 100,000 people a year. It would be a game changer," Burnett said. In the meantime, Rahim says he hopes someone invests in this hotel sooner rather than later. "There's no customers. I mean it's tough. Especially who have been in the business for a long time. Especially on this street. It's tough for them," Rahim said. Burnett says if a developer is interested in investing in the former Red Lion Hotel, they can reach out to her or High Point's economic development team.