[1] The original Palm Beach Hotel was constructed in 1902 and located on the shoreline of Lake Worth, where the Biltmore Condominiums stand today.

Embers from the flames at The Breakers blew across the island and landed on the Palm Beach Hotel, igniting a fire.

The Palm Beach Hotel burnt rapidly, with the some 160 guests reportedly only able to retrieve small items.

More than 1,000 people attended the festivities for the grand opening and danced to a musical accompaniment by the Strauss Orchestra of New York, including Mengo Lazarus Morgenthau, brother of Henry Morgenthau Sr.[2]: 15  A story by The Palm Beach Post on the next day included the following description of the building: "Three stories in height and 400 feet [120 meters] in length, the hotel provides each of the 320 rooms an outlook either on Lake Worth or the ocean.

However, the hotel hosted guests such as W. C. Fields, Arthur Hammerstein, Kyra Markham, William Starr Myers, and Will Rogers.

The Palm Beach Hotel, however, continued to host social functions, including assisting individuals in finding employment.

The town government approved the re-designation in February 1981, making the building the first hotel condominium in Palm Beach.