To meet the needs of the growing Austin community, T.B. Baker, President of Baker Hotels, opened a hotel in 1924 at this site, previously occupied by the Keystona Hotel. Baker's new facility, initially to be called "The Texas," was named for Stephen F. Austin in response to local interest. Acclaimed Fort Worth firm Sanguinet, Staats and Hedrick designed the Beaux Arts hotel; local architect Roy L. Thomas represented them in its construction. In 1938, five stories were added. After a restoration in 2000, the hotel retains much of its original, classically influenced detailing on the interior and exterior.