The hotel was built by pioneering Miami Beach developer Carl G. Fisher in 1920,[2] designed by Rubush & Hunter of Indianapolis,[3] and opened in 1921.

He saw the smooth waters of Biscayne Bay as the perfect place for a boat racing spectacle, as an attraction for wealthy and refined tourists.

[4] The automobile racing promoter established the Biscayne Bay Speed Boat Regattas near Belle Isle as a publicity draw for his large new hotel.

He would continue to stoke the exotic vacation destination image that drove the land boom in the area with stunts like his publicity photos with his elephant Rosie.

In 1935, despite a reservation by the New York Giants baseball team, Jewish players Phil Weintraub and Harry Danning were refused entry to the hotel, which had a "No Jews" policy.