Gustav and Mathilda Hoberg homesteaded the Hoberg's property in 1885 and lived there with their 5 children.The hotel business was started a few years later when travelers would reach the Hoberg ranch, stop over torest their horses, and enjoy a bountiful home-cooked meal. The Hoberg's reputation for hospitality spread,and more and more people came to visit. Eventually, they came to vacation. Rumor has it that the famous gentleman stagecoach robber, Black Bart, knew the Hoberg family and was a regular visitor.

      By 1888, millionaires and movie stars were frequenting Hoberg's, including the infamous actress and royal paramour Lillie Langtry. In the 1920s, Luther Burbank, the famous American botanist, also was a frequent guest.