He constructed the Dallas Hilton in 1924–25,[3][4] then identified several West Texas cities, including San Angelo, in which to open hotels.

[6] On March 5, 1928, the West Texas Lumber Company (WTLC) accounted that it had signed a 15-year lease with Hilton to build a hotel on the site of its offices.

[9] Dallas-based architect Anton F. Korn was selected to design the hotel;[8] his plans were made public on April 22, 1928.

[23] The excavation produced 8,000 cubic yards (6,100 m3) of spoil that was disposed of by creating an athletic field at a nearby campground.

[24][25] After bedrock was reached digging continued with explosives, which resulted in rocks striking the O. C. Fisher Federal Building across the street.

[26] Construction had begun by September 16, when the San Angelo Standard-Times reported that the concrete pours for the hotel's first floor were almost complete.

[27] Pours for the uppermost portions of the hotel began on January 1, 1929, as did the erection of a steel frame for the roof and bricklaying,[28] both completed on February 3.

[43] In Architecture in Texas: 1895-1945, historian Jay C. Henry called the composition of the Cactus Hotel's exterior "rather weak and unconvincing.