The 1926 construction and the community-subscription origin
The Hotel Monte Vista's 1926 construction was a community project in the literal sense — Flagstaff residents and businesses bought subscription shares to finance the hotel as a civic investment in the town's tourist future. The community was responding to two specific developments: the official designation of Route 66 as a federal highway in 1926 (which was expected to bring substantially increased motor-tourist traffic through Flagstaff) and the broader expansion of the railroad-passenger and tourist economy in the American Southwest during the prosperous 1920s. The Monte Vista was conceived as Flagstaff's first-class hotel — comparable to the hotels then operating in larger Southwestern cities — and the community subscription model ensured that local interests would maintain control of the property.
Construction was completed quickly by 1926 standards, with the four-story brick building rising over the course of a single construction season and the hotel opening for business in early 1927. The original interior design was contemporary 1920s commercial-hotel style — substantial wood-paneled lobby, a long bar running along one lobby wall, ornate ceiling treatments in the public spaces, and substantial guest rooms with private baths on the upper floors (private baths were a luxury for 1920s-era hotels and a distinguishing feature of the Monte Vista compared to older Flagstaff lodging options).
The hotel survived the Great Depression years through some combination of railroad traffic, ongoing Route 66 motor traffic, and the hospitality of the local community that owned the property. By the late 1930s, the Monte Vista had stabilized financially and was beginning to attract the Hollywood film-industry traffic that would define its celebrity heyday through the 1940s and 1950s.