In the depths of the Great Depression, Lucien and Rosalie Phillips, who had opened the original Monte Vista Hotel in 1919, invested in building a new and modern hotel located just west of the original one. It opened August, 1937, giving a welcome boost to the local economy. The 3-story, brick building was constructed by the Black Mountain Lumber Company, with C. C. Dougherty, builder in charge. (See Asheville Citizen, Aug. 8, 1937.)