Prohibition sent North Americans south of their border in search of entertainment and alcohol, developing first Tijuana, then Rosarito, and finally Ensenada as tourist destinations.
The North American Compañía Mexicana del Rosarito decided to establish in Ensenada a grand hotel, initially called the Hotel Playa de Ensenada (Ensenada Beach Hotel), designed by Gordon F. Mayer in the most dramatic and luxurious style with materials sent south from the United States.