The passenger service on the branch line was discontinued in 1932 and the hotel itself was requisitioned by the military at the outset of World War II; it never re-opened to the public.
On that basis the Formartine and Buchan Railway Company built branch lines from Dyce to Peterhead and Fraserburgh, in Aberdeenshire, Scotland.
It had been built in 1874, and the GNoSR set about modernising it, installing electric lighting and hydraulic lifts; it reopened in August 1891.
The location at Cruden Bay was considered to be perfect, but the nearest railway station was at Ellon, on the Formartine and Buchan line, about 10 miles distant.
It was planned to continue the line for five miles beyond Cruden Bay to reach the small fishing town of Boddam.
With granite quarries to be served, the Boddam fishery, and the Cruden Bay brickworks, as well as the proposed hotel, the 15-mile line was regarded as a safe project.
The Cruden Bay station was built to a high standard, in keeping with the hotel: the Glasgow Herald (newspaper, now retitled The Herald described the station as extremely handsome, with ornamental gables and panel work, separate first class waiting rooms for ladies and gentlemen, a refreshment buffet, and a carriage verandah outside.
In late December 1898 a special train of "luxurious bogie saloons" [modern railway coaches] had taken directors and guests to view the almost-finished hotel.
After five months of operation the results were described as "most encouraging" and the hotel committee decided to keep it open though the winter, at a reduced rate of £2 10s per week.
The season was too short to make them profitable, and the railway, which passed through comparatively poor country, never paid, and the time came when all concerned wished it had never been made.
Mr Trenchard had gone, and Miss Williams, manager of Bruce's Hotel, Carnoustie, was appointed at £100 a year plus 2+1⁄2% of net annual profits as an incentive to keep costs down.
The Company had tried to sell a lease of the Cruden Bay Hotel, but none of the large chains were attracted.
After the opening of the Cruden Bay Hotel, improved connections were given by the acceleration of trains on the Buchan section.
[4] In April 1899 the GNoSR was criticised when it issued cheap fares for Sunday travel, so enabling golfers to desecrate the Sabbath by playing on the new course at Cruden Bay.
But the newspaper reporter felt that people would be "just as well employed in playing golf on Sundays as loafing about church doors and annoying worshippers as they are complained of doing in Aberdeen".
Eventually, it was decided that the heavy cost of maintaining the hotel was not justified, and in July 1947 it was sold to a demolition contractor.
Most of the bridges which carried the railway have been taken down, including the substantial Cruden Bay viaduct, although three pillars of it remain standing.
[20] The Campaign for North East Rail has proposed the reopening of part of the route for a new line to Peterhead, which would follow the alignment of the Boddam branch as far as Cruden Bay.