Historic Motel Inn in San Luis Obispo Listed for Sale After Stalled Redevelopment

The 4.21‑acre site of the world’s first motel, opened on December 12, 1925 as the Milestone Mo‑Tel in San Luis Obispo, California, has been put on the market. The property, later renamed the Motel Inn, was designed by architect Arthur Heinemann, who coined the term “motel.” It closed in 1991 and most original buildings were demolished in 2006, leaving only the restaurant façade and the mission‑style bell tower.

Developers CoVelop and Rossi Enterprises received approval for new hotel projects in 2017 and again in 2023, but construction never began and the plans stalled. Hayes Commercial Group is now marketing the historic site, noting that entitlements and permits are in place and the zoning permits mixed‑use residential, senior‑living, and boutique resort development. No asking price has been disclosed.