Historic California motel, birthplace of the modern motor inn, goes on the market
The original Milestone Mo-Tel, later called the Motel Inn and recognized as the world’s first motel, is now for sale in San Luis Obispo.
San Luis Obispo’s historic Milestone Mo-Tel, opened on December 12, 1925 and later renamed the Motel Inn, is listed for sale by Hayes Commercial Group. The site, situated at 2223 Monterey Street just off Highway 101, spans 4.21 acres and retains only the renovated lobby with its iconic three-tiered bell tower and the old restaurant front. Designed by Pasadena architect Arthur S. Heineman, who invented the word “motel,” the property once hosted celebrities such as Marilyn Monroe and Joe DiMaggio.
Closed in 1991, most original structures were demolished, but the parcel is fully entitled for a new 83-room boutique resort featuring 27 bungalow-style units, a pool, and a sound wall. Construction permits are ready, making it a rare “rock-breaker-ready” hotel opportunity. Potential buyers would be tasked with reviving a landmark that helped launch America’s road-trip culture.
Why it matters
The sale could revive a pioneering piece of travel history and spur new development in a historic California coastal town.
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