[2] It opened by the Hydropathic Company in 1881 to provide water cures and hydrotherapy remedies (pain-relief and treating illness) to guests.

The Hydro burnt down in July 1905 and was rebuilt by 1907, a building designed by the architect James Miller of Glasgow, at a more moderate cost of £37,000 owing to the use of salvaged materials.

The fire which destroyed the Hotel Hydropathic was apparently caused by an electrical fault started in the roof space.

In fighting the fire they were hampered by a lack of water-pressure, the sheer size of the Hydro building and the shortage of hoses which would have been required for such a situation.

As at Crieff Hydro there were outdoor recreations, from otter hunting to tennis, shooting, croquet and cycling, and a wide range of activities for inclement weather and the evenings.