In 1888, Charles F. Folger of Philadelphia purchased the former Elijah Alley house on Easton Street, just north of the main village of Nantucket. Folger hired carpenter Edwin R. Smith to design and build a new grand hotel for summer residents of Nantucket. Originally named the Point Breeze Hotel, the grand resort opened in the summer of 1891. The Queen Anne style hotel contained forty sleeping apartments in the upper floors and was dominated by a corner tower with billiards rooms and a bowling alley in the raised brick basement.

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