the hotel was built in 1913 for w. d. wheeler and was promoted by the southern pacific railroad in its literature advertising the connection of yaquina bay to the mail rail line at corvallis. the new cliff house replaced an earlier boarding house (the "cliff house") at the same location. the popularity of the new resort at newport was enhanced by the availability of alcohol, something unusual in the mostly "dry" area. the hotel overlooks nye beach, and is the only remnant of the tourist accommodations of that era in the nye beach section of newport.