The Hotel Ponce de Leon opened on January 10, 1888. It was an instant success, and within two years, Flagler opened another hotel in St. Augustine, the
Alcazar. Just across the street, it absorbed guests that the Ponce could not accommodate and eased the massive demand. A year later, in 1888, he purchased friend and colleague
Franklin Smith's
Casa Monica Hotel, renovating it and reopening it as the Cordova. The projects were Flagler's first three projects as a partner in PICO, the Plant Investment Company. In 1882, Henry Plant, Flagler and nine other northern businessmen established the corporation to develop the Southernmost Frontier of the US – the Florida peninsula from Orlando south. With the success of the Ponce de Leon, Flagler realized the need for a sound transportation system to support his resorts, and he purchased short-line railroads to form what would later become known as the
Florida East Coast Railway. He modernized the existing railroads for them to accommodate heavier loads and more traffic, allowing guests to reach the hotel from New York City and other northern cities. Over the next two decades, Flagler expanded the system further south, until it reached
Key West. The Overseas Extension is known as the Eighth Wonder of the Modern World. Noted personalities that stayed at the hotel during its operation included President
Grover Cleveland,
Mark Twain, future President
Franklin D. Roosevelt, as a college student on spring break, President
Theodore Roosevelt, President
Warren G. Harding, future President
John F. Kennedy at age 13 with his family, Vice President
Lyndon B. Johnson,
Somerset Maugham,
Babe Ruth and
Babe Didrikson. The headwaiter of the Ponce in the 1880s and 1890s was Frank Thompson, who was a pioneer civil rights advocate and an organizer of the professional black baseball team that became the
Cuban Giants. One member of the team,
Frank Grant, was elected to the
Baseball Hall of Fame. The hotel saw declining visitor numbers throughout the 1910s and 1920s. A major cause of this was the continuous extension of Flagler's railway, which allowed tourists to vacation in the warmer, tropical climates further south, giving rise to cities like
West Palm Beach and Miami. However, even as the Alcazar and Cordova Hotels closed, the Ponce remained open and was one of three Flagler hotels in the state to survive the
Great Depression and operate into the mid-20th Century. ==Art colony==