Palacios Area Historical Association
"City by the Sea Museum"

An Historic Inn Overlooking Beautiful Tres Palacios Bay

The Luther Hotel is located in Palacios, Texas in Matagorda County. The Luther Hotel dates back to the early days of Palacios when it was referred to as "Jewel on the Tres Palacios Bay." "Pride of Palacios," and "The Palace of Palacios." It was called the Bay View Hotel. Then located on Bay Boulevard it was built to accommodate perspective land buyers that were flocking to the new coastal town.

In 1905 it was decided that the hotel should be moved from the East Bay location to the current location facing South Bay. The name would become Hotel Palacios. The Hotel was moved in three sections, the original chimneys were removed, and the porches were torn off.

After the move the wings were added along with the famous "Longest Front Porch in Texas." The yellow pine and cypress used to build the hotel has withstood the mid coastal atmosphere and numerous hurricanes for almost a century. Hotel Palacios became the center of social life for the area because of a famous dining room and ballroom where people gathered to dance to the orchestra.

Ownership of the hotel changed numerous times between 1911 and 1936 during which it fell into disrepair, and became an eyesore to the community and the bay front. When Charles and Elsie Luther purchased the hotel in 1936, it was in need of much work and renovation before it could once again be the "Jewel on the Tres Placios Bay." The old dining room and ballroom were too far gone to repair so they were torn down, and the eleven unit tourist court was added. The porch was removed, and the entire building was refinished inside and out.

On the Luther's 20th wedding anniversary, April 20, 1941, the hotel, renamed "The Luther," was reopened. Unfortunately, in 1944, the upper stories of the hotel were gutted by a fire. So once again out came the hotel underwent renovation.

When Elsie and Charles Luther passed on, their daughter, Claire Findley, took over the ownership and started managing the hotel. Many people from all over the world have stayed at the hotel.