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The hotel was developed by the Book Brothers—J. Burgess, Frank, and Herbert. The brothers sought to turn Detroit's Washington Boulevard into the "Fifth Avenue of the West." Part of that vision was the creation of a flagship luxury hotel to compete against the Detroit Statler Hotel three blocks to the north. They commissioned architect Louis Kamper, who designed their Book Building in 1917, to design the building. In 1917, the brothers bought the old Cadillac Hotel at the northeast corner of Michigan and Washington Blvd., but World War I material shortages delayed the start of work on their new hotel. Construction finally began in 1923, and the building, which bore part of the name of the old structure, was the tallest in the city and the tallest hotel in the world when it opened in December 1924.The hotel cost $14 million to build and contained 1,136 guest rooms. Public spaces on the first five floors included three dining rooms, three ballrooms, a spacious lobby, and a ground floor retail arcade. On the hotel's top floor was radio station WCX, the predecessor to WJR. The hotel operated successfully until the Great Depression, when banks foreclosed and the Book brothers lost control in 1931. For much of the period after the Books lost ownership, the hotel was run by hotel industry pioneer Ralph Hitz's National Hotel Management Company.On May 2, 1939, a meeting took place in the hotel lobby between New York Yankees first baseman Lou Gehrig and team manager Joe McCarthy in which Gehrig told McCarthy to leave him out of the starting line-up from that day's game, ending his 2,130 consecutive games streak.
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