Our History | Hotel Mac Rae

The Early Days

a black and white photo of a rocky coast

1887 – THE FIRST VISION OF AVALON

The first vision of Avalon as a resort destination began in 1887, when businessman George Shatto of Grand Rapids, Michigan, purchased the island. Catalina Island had been home to Native peoples for more than 7,000 years before European exploration began in 1542, when Juan Rodríguez Cabrillo claimed the island for Spain.

1891 – EARLY ISLAND OWNERSHIP

Shatto’s dream of making Avalon a vacation destination soon gained momentum with the construction of the original Hotel Metropole and steamer wharf. Real estate was auctioned off, and the first tourists began to arrive. Shatto purchased the SS Ferndale steamship to transport passengers to Avalon, once a day, with a crossing time of about four hours.

1891 – BANNING BROTHERS OF WILMINGTON, CALIFORNIA

Catalina Island was purchased by the Banning brothers of Wilmington, California, who were already well known for transportation and development in Southern California. As owners of the Wilmington Transportation Company, the Banning Brothers had provided much of the Catalina cross-channel transportation for years.

1895 – TENT CITY

During the 1890s, approximately 100 tents would be rented each summer, and this number grew steadily after the turn of the century. Renting for about $7.50 per week, life in “Tent City” included beds, bedding, basic furnishings, and basic cooking facilities. Lively card games were common after dinner.

1906 – HERBERT DEWEY MAC RAE

Herbert Dewey Mac Rae moved to Catalina Island in 1906 and was the accountant for the Banning Brothers. This photo shows 3 generations of Mac Rae’s circa 1914: John Ann (1841-1927), Herbert Dewey (1872 – 1931), and Margaret May “Peggy” (1914 – 1985). The Banning Brothers continued to make improvements throughout Avalon.

Fires, Rebuilding,
& The Birth of a Hotel

a body of water with boats and mountains in the background

1914 – BEFORE THE FIRE

Avalon development prior to the 1915 fire is shown here, including the Bath House, the Hotel Windsor, the Grandview Hotel, the Anheuser-Busch & Budweiser Café, and William Judd’s store. The fire that started near and destroyed the Hotel Metropole also took nearly every building shown in this photo.

1915 – THE 1915 FIRE

In the early morning hours of November 29, 1915, a fire started near the Hotel Metropole. By sunrise, nearly half of Avalon’s buildings and homes were destroyed. The volunteer fire department was no match for the blaze. Avalon lost six hotels that night, along with the Pilgrim Club, Grill Café, Tuna Club, Bath House, and nearly every home between Whitley Avenue and Hill Street.

1919 – CRESCENT AVENUE & THE 1919 FIRE

This photo of Crescent Avenue, taken before the 1919 fire, shows H.D. Mac Rae’s shop on the corner of Crescent and Sumner Avenues, where the drug store is today. The H.D. Mac Rae Curios shop advertised a circulating library, Indian baskets, Navajo blankets, wireless telegrams, souvenirs, fishing tackle, stationery, and news. On August 29, 1919, a fire at Lefavors Department Store destroyed the buildings located where the hotel stands today.

1920 – BREAKING GROUND & THE CASINO PAVILION

Mindful of Avalon’s recent fires, H.D. Mac Rae built the hotel using hollow clay tile (seen in this photo). Peggy Mac Rae is shown breaking ground in 1920 with her mother looking on. By using clay tile over wood, H.D. Mac Rae promoted the property as Avalon’s “1st Fire Proof Hotel.” In 1920, the large rock point inshore from Sugarloaf was removed, and a 90' wide by 45' high Casino Pavilion was erected.

1921 – 4TH OF JULY

Celebrating the 4th of July on the beach in Avalon in 1921. The brand-new Hotel Mac Rae stands proudly in the background, and the H.D. Mac Rae Curios Shop is still on the corner.

Hollywood, War,
& the Modern Era

1928 – THE CASINO

In 1928, the original Sugarloaf dancing pavilion was moved to Bird Park, where it remains today. The current-day Casino was then rebuilt in 1929 to accommodate more people. The Casino has hosted it all—motion picture premieres, big bands, live radio broadcasts, celebrities, USO shows, and more.

1930s – CRESCENT AVENUE, HOLLYWOOD, & THE BISON

Crescent Avenue circa the late 1920s to early 1930s. Note the larger Hotel Mac Rae sign on top of the building, the decorative metal awning over the entrance, and the flags across the avenue. The H.D. Mac Rae Curios Shop is still on the corner. Catalina Island was quickly adopted by early Hollywood filmmakers and stars and served as a backdrop for more than 200 motion pictures.

1942 – WWII

All tourism stopped on December 23, 1941. The war took over Catalina from 1941 to 1945. Like many islanders, Peggy took her family to the mainland. This infantry troop is marching down Crescent Avenue on Memorial Day, 1942. Hotel Mac Rae was just to the right of this shot.

1945 – HOSPITALITY

While other hotels charged servicemen 50–75 cents to shower, Peggy instructed her staff to let them shower for free if they signed her book. She collected 1,785 signatures.

1950

The hotel name is now painted on the top of the building, as it is today. New businesses are leasing the shops below the hotel. The wires on Crescent Street are now underground, and palm trees and the serpentine sitting wall are present.

2026

More than a century after those first guests arrived on Crescent Avenue, Hotel Mac Rae continues its story with the same spirit it was built on—warm hospitality, a one-of-a-kind location, and an easygoing welcome to Avalon. As we look ahead, we’re honoring the past while making thoughtful updates that keep the experience comfortable, simple, and unmistakably Catalina.

A CENTURY OF HOTEL MAC RAE

A CATALINA CLASSIC, SINCE 1920

The Early Days

Fires, Rebuilding,
& The Birth of a Hotel

Hollywood, War,
& the Modern Era

A CENTURY OF HOTEL MAC RAE

A CATALINA CLASSIC, SINCE 1920

The Early Days

Fires, Rebuilding, & The Birth of a Hotel

Hollywood, War, & the Modern Era

Fires, Rebuilding,
& The Birth of a Hotel

Hollywood, War,
& the Modern Era