The site of the world's first motel, the Milestone Mo-Tel, later known as the Motel Inn, has been listed for sale in San Luis Obispo, California. This landmark property, credited with initiating the concept of roadside lodging for motorists, is being offered by Hayes Commercial Group without a public asking price.
The 4.21-acre parcel is located at 2223 Monterey Street, adjacent to Highway 101, which follows the historic El Camino Real, a route once connecting California's Spanish missions.
Opened on December 12, 1925, the Milestone Mo-Tel was conceived by architect Arthur S. Heineman as a destination for the burgeoning automobile age. Heineman coined the term "motel" by combining "by blending 'motor' and 'hotel.'" The establishment offered guests the convenience of parking their vehicles directly outside their rooms, a novel concept at the time. Its location was strategically chosen roughly halfway between Los Angeles and San Francisco, providing a convenient stopping point for travelers on the long drive.
Historic Significance and Evolution
The motel, known for its Mission-style architecture and a distinctive three-tiered bell tower, became a notable landmark. In its heyday, it hosted notable figures, including Marilyn Monroe and Joe DiMaggio in the 1950s. The motel closed permanently in 1991.
Over the subsequent decades, most of the original structures were demolished due to disrepair. Currently, only the refurbished lobby building, featuring its bell tower, and the facade of the former restaurant remain. These remnants are situated behind chain-link fencing.
Future Development Potential
The site has received full entitlements for the development of an 83-room boutique hotel. The proposed design includes 27 bungalow-style guest buildings, a swimming pool, and a new sound wall. Construction permits are reportedly ready for issuance, presenting what the listing broker calls a "a shovel-ready, entitled hotel site on Highway 101 in one of the most supply-constrained lodging markets on the Central Coast."
As the Motel Inn property is on the City of San Luis Obispo’s Historic Preservation List, any future development must incorporate the remaining historic structures. The sale offers a potential opportunity to modernize a historically significant site into a contemporary hospitality destination.