The hotel, originally named the Bay View Hotel, was built in 1903 by the Texas Rice Development Company to cater to rice farmers and ranchers.[1][2]
In 1904, the hotel was moved "around the corner" to its present location.[3] In the move, the original chimneys and porch were removed, and the east and west wings were added to the original central structure.[1] A new 300-ft porch was also added to the building, dubbed the "longest front porch in Texas".[1] The hotel was renamed the Hotel Palacios.[2]
During World War I, the hotel hosted Red Cross volunteers several times a week, who would use the time and space to sew garments for American soldiers.[3]
In 1936, a new owner, Charles Luther, bought the hotel and enclosed the porch to add more rooms.[2]
The hotel was busiest during World War II.[3] Notable visitors to the hotel during that time included Rita Hayworth and Shirley Temple.[3] These celebrities, as well as visiting bands, would entertain troops at the nearby Camp Hulen.[2][3] In 1944, the building's top two floors were damaged by a fire.[1]
In 1961, the building was again damaged, this time by Hurricane Carla.[1] The hotel was designated as a Recorded Texas Historic Landmark in 1965.[4]
It was added to the National Register of Historic Places on May 10, 2010.[4]
In the early 2020s, the hotel's owner died without a will, placing the hotel's status into limbo. A preservation group based in Palacios gathered 2,000 signatures from across the state and country in favor of preserving the building.[3]
