Cornell, a successful lawyer, businessman and real estate speculator, purchased 300 acres (1.2 km2) of Lake Michigan lakefront land between 51st and 55th Streets in Hyde Park Township (six miles south of downtown Chicago).

He constructed a hotel, The Hyde Park House, in the 1850s near the planned rail depot in order to introduce travelers to a new suburb that provided escapes from the cities.

The 4 story Hyde Park House was a popular summer respite for a clientele who had the time and money for extended stays.

Within 10 years of its initial development the town population grew past 1000 residents including numerous former guests of the hotel.

In 1923, proprietor Harry W. Sisson was linked to the Ku Klux Klan by the American Unity League, which resulted in a boycott by Catholics and Jews.

However, this is changing with the Hyatt Place hotel and mixed-use development at 53rd Street and Lake Park Avenue, two blocks to the west.