The hotel was opened in 1928 and was the dream of Thomas Rowe, who had made his fortune in Florida real estate. It was built to resemble The Royal Hawaiian in Waikki Beach, and was known for its pink painted exterior. The hotel played host to many people from high society including Al Capone.

Thomas died, and left his will unsigned, so his wife became heir. But this was not wanted and within 3 years the hotel had lost most of it appeal.

It was bought by the US army for use as a convalescent center for World War II airmen. Afterwards it was stripped for use as a regional office, unable to afford much needed repairs they moved out in 1967. The building became abandoned and become covered in graffiti and the only option seemed to be demolition, but a preservation group rescued the hotel by finding a buyer.

The hotel reopened in 1973 as a luxurious hotel. Between 1985 and 1989 extensive renovations were carried out. The name was changed to Don CeSar Beach Resort after a full service beach club club was added. Over the years much money as been spent to extend the granduer of the hotel. Don Cesar is listed on the National Register of Historic Places.

There used to be a replica fountain in the grounds which Thomas had built to remind him of his lost love, the original fountain was in Europe where he he used to meet his love when he was a student, but her parents forbade the relationship, and Thomas returned to America. He had the fountain built at the same time as the hotel. Guests have reported seeing the pair walking around the area where the fountain used to be.