Alfred Gage left his native Vermont in 1878 and set out to make his fortune in the wide open spaces of Far West Texas. Finding work as a cowhand, he and his brothers later founded the Alpine Cattle Company south of Marathon. By 1920, Gage was a prosperous banker and rancher. Needing a headquarter for his extensive operations he employed the acclaimed firm of Trost and Trost to design a hotel, and Ponfords and Sons of El Paso to build it.

Opening in 1927, the Hotel became a gathering place for many ranchers and miners of the area. Gage, however, was unable to enjoy the success of his hotel. He passed away the year it opened.

After decades of neglect the Hotel was purchased by J.P. and Mary Jon Bryan of Houston. Restoration was begun as well as an expansion of the facilities. The Los Portales rooms were opened in 1992, Café Cenizo opened in 1996, Desert Moon Spa opened in 2003, and
Gage Gardens opened in 2007.

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