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The world’s first motel was right here in SLO. It’s finally close to getting rebuilt

The Motel Inn in San Luis Obispo holds the honor as the world’s first motel.
The Motel Inn in San Luis Obispo holds the honor as the world’s first motel. dmiddlecamp@thetribunenews.com

The world’s first motel was built right here in San Luis Obispo — and after years of waiting, plans for the property and what remains of the historic building are finally be moving forward.

A proposal to build a new hotel on the Motel Inn property at the end of Monterey Street was approved in 2017 — but for years the project has lingered in development.

On Wednesday, the San Luis Obispo Planning Commission approved a revised project design to transform the property into an 83-room hotel with 27 bungalow guest room buildings, a pool area and a new sound wall, according to planning documents.

This could mean construction will start on the long-stalled project by as soon as early next year.

The Motel Inn in San Luis Obispo, seen here in 2016, is known as the world’s first motel.
The Motel Inn in San Luis Obispo, seen here in 2016, is known as the world’s first motel. Joe Johnston jjohnston@thetribunenews.com

What is the history of the Motel Inn?

What today is called the Motel Inn was originally known as the Milestone Motel.

Built in 1925, the business was heralded as the world’s first motel thanks to its convenient location next to Highway 101 that made it an easy overnight stop for travelers driving between Los Angeles and San Francisco.

During its history, the motel attracted a number of famous visitors, including Marilyn Monroe and Joe DiMaggio, who stopped for lunch in 1954 after spending their honeymoon night in Paso Robles.

In 1983, the motel was included in the city’s list of historically significant properties, but over the following decades the business would shutter and much of its original structures would be demolished due to “extensive deterioration.”

Today all that is left is the facade of the original restaurant, and refurbished portions of the lobby building including the three-tiered bell tower with a copper dome.

A lone facade from the original Motel Inn is propped up by supports on Monterey Street in San Luis Obispo.
A lone facade from the original Motel Inn is propped up by supports on Monterey Street in San Luis Obispo. David Middlecamp dmiddlecamp@thetribunenews.com

In 2000, developers Rob Rossi and John King bought the crumbling property for $3.6 million, with plans to rehabilitate it.

It would take almost two decades before such a project would make it to the city.

In 2017, the city Planning Commission approved a proposal to build a new hotel and restaurant on site, as well as Mission Revival style “bungalows” and recreational vehicle spaces outfitted with Airstream trailers.

Construction was slated to begin that fall — the city even issued building permits — but ultimately the project has lingered in limbo for the past five years.

What are plans for Motel Inn project?

The biggest change the Planning Commission approved in the new design for the Motel Inn project is the nixing of the 27 proposed Airstream trailers.

Those will instead be replaced with 10 single-story bungalows and three two-story bungalows, according to planning documents. That would comprise about 27 guest rooms.

The bungalows would be arranged around a court similar to the other already approved bungalows, and a 12-foot sound wall would be construction at the northern boundary of the site.

Construction is expected to last approximately 20 months, beginning in early 2024, according to planning documents.

The Motel Inn in San Luis Obispo holds the honor as the world’s first motel. Refurbished portions of the lobby building include the three-tiered bell tower with a copper dome.
The Motel Inn in San Luis Obispo holds the honor as the world’s first motel. Refurbished portions of the lobby building include the three-tiered bell tower with a copper dome. David Middlecamp dmiddlecamp@thetribunenews.com

This story was originally published July 11, 2023 at 3:38 PM.

Kaytlyn Leslie
The Tribune
Kaytlyn Leslie writes about business and development for The San Luis Obispo Tribune. Hailing from Nipomo, she also covers city governments and happenings in San Luis Obispo. She joined The Tribune in 2013 after graduating from Cal Poly with her journalism degree.
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