The $1,500,000 construction cost was funded by the Bowman-Biltmore Hotels Corporation of New York City, with a 5 March 1927 groundbreaking.

In 2000, billionaire Beanie Babies creator Ty Warner purchased the hotel[5] for $150 million,[6] while retaining Four Seasons as the management company.

[8] In August 2023, it was reported that Warner and the company were nearing an agreement, and the hotel might reopen in late 2024.

[9] In August 2024, it was reported that Warner intends to add a huge pool and beach area to the property, including a "lazy river waterway" and waterfall.

This has created conflict with the Montecito Board of Architectural Review, which feels the alterations would damage the historical character of the resort.