R.E. "Griff" Griffith and the 1937 founding
R.E. "Griff" Griffith arrived in Gallup in the mid-1930s with a specific business proposition: build a substantial Hollywood-friendly hotel positioned to capture the rapidly growing film-location business. Gallup had become a major Western film location in the late 1920s and early 1930s, with directors discovering that the red-rock canyons, badlands, and mesas of the surrounding country gave them every Western landscape Hollywood could imagine within a short drive of a single base camp. Existing Gallup lodging was inadequate for full studio production companies — small motor courts and a handful of older downtown hotels couldn't accommodate the 40-80 person casts and crews that major Western productions required.
Griffith chose a site on the eastern edge of Gallup along Route 66 — far enough from the noisy railroad and downtown commercial district to give film crews a quiet base, close enough to be a short drive from the location-shoot canyons northwest of town. The hotel was designed in a hacienda-revival style with substantial log beams in the lobby, stone fireplaces, Navajo-rug decor, an upstairs gallery wrapping the two-story lobby, and 49 guest rooms (the number chosen as a Route 66 homage to the 1849 California gold rush). Construction was completed in 1937 and the hotel opened in time to capture the rapidly expanding production cycle.
Griff Griffith was reportedly able to leverage his brother D.W. Griffith's Hollywood connections to bring early production companies to the hotel as guests during the opening months — a kind of soft launch that established the El Rancho as a Hollywood-approved location before the broader industry had heard of it. By 1939 the hotel was already hosting multiple major productions simultaneously, with cast members from one film shooting at a nearby canyon while another production used a different canyon ten miles away.