Wealthy lumber barons and railroad magnates, politicians, and upper-class investors of the day wanted a hotel that would fit their social station and demand for comfort and excellence.

The decorative details were designed in the Jacobean Revival style by the Portland architectural firm of DeYoung and Roald.

[5] The building of the New Heathman was Portland's largest construction project to that date, employing 1,200 workers, all of whom were invited to celebrate at the pre-opening party.

His wife, Katherine, and their two children remained active in the hotel industry and retained an interest in operations of the New Heathman until the early 1960s.

In the next decade, new city leaders recognized the changes and sought to convince major retail stores to keep their operations in the heart of downtown, and to even build new locations.

A performing arts center was developed in the old Paramount Theatre (now called The Arlene Schnitzer Concert Hall) located next door to the New Heathman.

The site's development and architectural design plans were drawn with the help of the city, private investors, concerned citizens, and artists.

[3] At the time the building was nominated for the NRHP, it was noted that "interior fixtures, facilities and furnishings are presently ill maintained, inadequate and outdated.

"[1] The New Heathman's importance to the neighborhood appealed to developers, so by autumn of 1984 a two-year and $16 million renovation of the building was completed, with the "New" prefix removed from the name, as the original hotel had long since been renamed.

[6] The Heathman's public spaces were remodeled in new natural materials like marble and teak brought in by Portland architect Carter Case and interior designer Andrew Delfino.

Above the Tea Court, a 100-year-old crystal chandelier that was once used in the U.S. Embassy in Czechoslovakia was hung and 18th-century paintings by French landscape artist Claude Lorrain were installed and remains to this day.

[13] The sculpture, which includes a dog bowl filled with fresh water, was donated by Banfield Pet Hospital in 2010, and depicts the star of the "Zelda Wisdom" line of greeting cards.

[15][16] The Heathman acquired several original artworks at the time of the 1980s remodel and launched a campaign of support for the visual arts.

The Heathman also has a library on the mezzanine level containing a large collection of books signed by authors who have been guests at the hotel.

[19][20] In 2003, while the restaurant was under McCormick & Schmick's management, Anthony Bourdain reported in The New York Times on a special all-offal menu at the Heathman created in his honor.

As a result, Paley Hospitality moved to terminate operations of most Portland restaurant outlets, including Headwaters at the Heathman Hotel.

The closure was extended into October 2020 as management reorganized and prepared to introduce health, sanitation and safety requirements expected by travelers.