La Posada original Staff 1930

In the 1920s, Harvey decided to build a major hotel in the center of northern Arizona. “La Posada”—the Resting Place—was to be the finest in the Southwest. Construction costs alone exceeded $1 million in 1929. Total budget with grounds and furnishings was rumored at $2 million (about $40 million in today’s dollars). La Posada opened May 15, 1930, just after the stock market crash of 1929, and remained open for just 27 years.

In 1957, the hotel closed to the public. The museum-quality furnishings were auctioned off in 1959. In the early 1960s, much of the building was gutted and transformed into offices for the Santa Fe Railway. Several times over the ensuing 40 years, the building was nearly demolished, as recently as 1994 when the railway announced its plans to move out for good. 

The National Trust for Historic Preservation found out about La Posada’s peril and added it to their endangered list — where it came to the attention of Allan Affeldt. But La Posada was never for sale. Allan Affeldt purchased it from the Santa Fe Railway after learning that the property was in danger.  This daunting task entailed negotiating for 3 years with the railroad and resolving various legal, environmental, and financial obstacles. He established La Posada LLC to take on the enormous risk and complexity of the estimated $12 million restoration.

http://laposada.org/history/