Graduate Hotel on Kirkwood Avenue in Bloomington is selling beer, wine, and canned cocktails.
The announcement on Facebook came to a surprise to many as the hotel has been seeking an alcohol license for years.
Indiana law doesn’t allow establishments within 200 feet of a church or school to obtain liquor licenses.
Hotel officials tried a year ago to be recognized as part of a local historic district but was unanimously voted down by the city’s preservation commission.

Hotel General Manager Andrew Harris said the hotel worked out a deal with First United Methodist Church.
“Through a series of negotiations and that kind of thing, we were able to kind of make nice, you know, and show our neighborly intent with the church next door. And finally, they were able to sign off and say yes,” Harris said.
Pastor Lisa Shubert Nowling said the church has been in conversations with the hotel for more than six years. She said both sides agreed not to disclose specifics of the partnership.
For now, a pop-up bar is sectioned off in the main lobby.
Harris said renovations to Poindexter Café off Kirkwood Avenue should be complete by IU Parents Weekend September 20th.

“We hope to see more weddings and that kind of thing, events that are hosted upstairs in our space. And then we hope to, you know, drive a lot of folks in,” Harris said.
He said hotels are not tied to the same quota limitations that some bars and restaurants have.
Service will shift from a walk-up counter model in the morning to restaurant server service by evening.