In 1883, the old Dallas Hotel burned. Five years later, the Dallas Hotel Company was organized for the purpose of erecting a much-needed new hotel. This hostelry was planned as a three-story wooden building with accommodations for 100 guests as well as waiting and dining areas and a billiard bar. The new hotel was situated on the northeast corner of Court and Church Streets opposite the new city hall and adjacent to the Church Street railroad tracks. The new building was christened the “Enterprise” and it quickly achieved status as one of the most important businesses in Dallas.
The hotel subsequently went through a series of owners, renovations and name changes. By 1900, the renamed “Holman House” had become busy enough to warrant the construction of an annex. In 1902, Jonas B. Thompson purchased the hotel. Thompson had administered the estate of his father, Elbert W. Thompson which included the land upon which the hotel was built. In 1909, the J. B. Thompson Building, a three-story brick building in the commercial style was finally constructed. This is the building that we see today, unaltered except for the street-level storefront which has been extensively modified through time. The top two stories served to accommodate guests while the bottom has housed a series of businesses, including a Golden Rule store (the original name of J. C. Penney stores) and a series of restaurants and bars.
In its early days, the hotel became very popular, developing a valley-wide reputation as offering first-class accommodations and excellent dining courtesy of a series of professional chefs hired from the Portland area. Traveling sales representatives, called drummers, would make a point of stopping over at the Gail, and excursion trains would travel up the valley from Portland carrying guests who would dine at the restaurant and stay overnight.
The name “Hotel Gail” was first recorded in 1913 and referred to the young son, Gail Miller, of the new owners. The next-door brick building then of course became the Hotel Gail Annex and later the Gail Hotel Annex.
The Gail continued to develop its reputation as a popular hotel and restaurant through the 1920s, becoming as well the site of luncheons and banquets for the Dallas Chamber of Commerce, then later the Kiwanis Club, and other local organizations.
Fire, however, became a recurring threat. The two properties experienced a series of fires beginning in 1922 when a blaze broke out in the Annex. The original wooden hotel suffered only slight damage, and the Annex was quickly repaired. In 1932, sparks from a chimney ignited the roof and attic of the hotel, but the flames were quickly confined. In 1935, a fire caused by a defective flue swept through the wooden building. Repairs were made and the hotel quickly reopened. Finally, in 1952, fire started in the attic of the Gail and severely damaged the wooden structure. The brick addition was spared but the wooden building was razed to be replaced by the parking lot seen today next to the Annex.
By 1978 it had become a temporary lodging establishment for transients, evicted tenants, and homeless people. Despite renovations made in 1979, and a reopening as a hotel, the Annex was not able to recapture the clientele needed to survive. Only the first-floor tavern remains open for business today, but efforts are continually made to revive the upper floors of the building.
KEY REFERENCES:
- Gail Hotel Chronology Based on Research by Bette Jo Lawson and Sue Rohde

