World’s first motel in San Luis Obispo marks 100 years but future remains uncertain

One hundred years ago, on December 12, 1925, the world’s first motel opened its doors in San Luis Obispo, changing travel forever.

Known originally as the Milestone Mo-Tel, and later the Motel Inn, the lodging spot for weary Highway 101 travelers introduced a brand-new concept: affordable, stylish accommodations right off the road for just $1.25 per night.

PIERRE RADEMAKER

Designed by architect Arthur Heinemann, who coined the word motel as shorthand for “motor hotel”, the property quickly became an iconic halfway point, welcoming motorists midway between San Francisco and Los Angeles. 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.

The Motel Inn closed in 1991 and sat vacant for decades. In 2017, developers CoVelop and Rossi Enterprises unveiled plans to revive the historic site, blending modern amenities with its original charm.

Over the years, proposals evolved but were repeatedly postponed. In 2023, the San Luis Obispo Planning Commission approved the latest designs, which included 83 guest rooms and 29 mission revival-style bungalows. Still, construction never began.

Lead architect Ariana Melendez, who has been part of the project for 12 years, told KSBY the development is now “on hold for the foreseeable future.” Neither developer could be reached for comment.

For now, only part of a wall and the mission bell remain, marking the birthplace of the motel industry. As it celebrates its centennial, the Motel Inn’s future is still unknown but its place in travel history is secure.

FAST FACTS: The Motel Inn

• Opened: December 12, 1925
• Original Name: Milestone Mo-Tel
• Architect: Arthur Heinemann
• Room Rate in 1925: $1.25 per night
• Historical Significance: First property to use the term “motel”
• Closed: 1991
• Current Status: Vacant; redevelopment plans on hold