Following the success of the Palace Hotel in Aberdeen, it was built between 1897 and 1899 by the same owners.

The hotel had 55 rooms, tennis courts, croquet lawns and lawn-bowling greens.

[2] It was part of a grand scheme to transform Cruden Bay into an upmarket luxury resort, one that was described as the Brighton of Aberdeenshire.

[4] Notable patrons of the hotel include British prime ministers H. H. Asquith and David Lloyd George, who met there for afternoon tea, while Winston Churchill played on the golf course.

[3] Christian Watt worked in the hotel laundry building, which survived until the late 20th century.