The site of what is credited as the world's first motel, the Motel Inn in San Luis Obispo, is on the market, and a redevelopment firm says an 83-room hotel plan is fully entitled and ready to build.
Steve Schmidt, Executive Director of the San Luis Obispo County History Center, said the property's origins trace back more than a century.
"So in 1925, they came up with this idea of having a motor hotel. There are some legends that say they couldn't fit 'motor hotel' on the sign, so they just shortened it to a motel," Schmidt said.
The cover page of the Hayes Commercial Group's property listing points out that the site is 4.2 acres adjacent to Highway 101. The listing agents have not put a dollar figure on their marketing for the price, and they tell KSBY Reporter Jessica Roe that is common in commercial real estate. They emphasize it could be a future hotelier's dream, ready to go.
The Motel Inn's location along what is now Highway 101 was no accident. San Luis Obispo served as a natural midpoint for early automobile travelers making the two-day journey between Los Angeles and San Francisco.
"Back in the day, the Model T was the most important automobile, and you could not make the trip from Los Angeles to San Francisco or back in a day. It took two days, so it made sense to use San Luis Obispo for a halfway point for stopping," Schmidt said.
In its heyday, the property was considered a luxury destination, even at Depression-era prices.
"The Motel Inn was considered very glamorous at the time. Although they only charged $1.25 a night for a stay, you could pull your car directly up in front of the bungalow. Each bungalow had an orange tree planted in front of it, so you could get up in the morning and pick an orange. Imagine this is the California dream," Schmidt said.
Today, its mission bell tower still stands at the base of the Cuesta Grade, a lasting symbol of what was once a thriving roadside beacon.
Now, a redevelopment firm and commercial real estate team are marketing the property with a construction-ready plan that draws on that original vision. Damien Mavis of CoVelop Collaborative Development said the design pays homage to the site's roots.
"We kind of pulled from the original designs where the rooms were like a bungalow configuration, Spanish revival architecture, and so all of those were kept as design themes in this current design," Mavis said.
![Motel Inn[89].jpeg](https://ewscripps.brightspotcdn.com/dims4/default/fff9fcb/2147483647/strip/true/crop/1035x654+0+0/resize/1035x654!/quality/90/?url=http%3A%2F%2Fewscripps-brightspot.s3.amazonaws.com%2F4e%2Fec%2F78763868407f8599ffb4b5b973fe%2Fmotel-inn89.jpeg)
The 83-unit hotel plan is fully entitled, meaning a buyer could move directly into construction.
"So we have permit approvals for a portion of the current entitled land, but the 83-unit plan is fully entitled, so it's ready to build," Mavis said. "With the history involved in this particular property, we think it really could become an iconic hotel here in San Luis Obispo."
According to the developer, approximately 46,500 cars pass by the location each day, offering freeway visibility and direct highway access. The property is centrally located near Cal Poly and downtown San Luis Obispo. The existing structure on the site measures 2,410 square feet.
The developer also notes the property could alternatively be re-entitled as a mixed-use project, allowing for residential uses including multi-family and assisted living, as well as a variety of commercial uses.
The real estate listing for the property can be found at this link: https://www.hayescommercial.com/listings/2223-monterey-st/.
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