The story of the Baker Hotel begins in 1922, when citizens of Mineral Wells, concerned that non-citizens were profiting off of the growing fame of the community’s mineral water, raised $150,000 in an effort to build a large hotel facility owned by local shareholders. They solicited the services of prominent Texas hotel magnate Theodore Brasher Baker, who gained fame by designing and building such grand hotels as the Baker Hotel in Dallas, the Hotel Texas in Fort Worth, and managed the Connor Hotel in Joplin, Missouri.
Architect Wyatt C. Hedrick based the hotel design on the Arlington Hotel in Hot Springs, Arkansas, which was known for its water and baths. Construction began on the hotel in 1926 but was stopped after Mr. Baker made a trip to California, where he visited a hotel with a swimming pool and decided the new Baker Hotel must have one in the front of the hotel. The swimming pool was placed on top of an already-completed basement, which was used as a work area for the hotel and a changing area for guests. An Olympic sized pool to be filled with the curing mineral waters, it was the first swimming pool built at a hotel in Texas.
Construction began the following year on the grand and opulent structure, which was described by Palo Pinto County historian John Winters as “Spanish Colonial Revival, Commercial Highrise.” It would rise fourteen stories over Mineral Wells, house 450 guest rooms, two ballrooms, an in-house beauty shop, and other novelties such as a bowling alley, a gymnasium, and an outdoor swimming pool. Completed three years later with a cost in 1929 dollars of $1.2 million, the mammoth building instantly dominated the city skyline. It was the first skyscraper to be built outside a major metropolitan area.