Financed by the Eureka Springs Improvement Company and the Frisco Railroad, the building was designed by architect Isaac L. Taylor and construction was completed in 1886. Upon its completion, the Crescent was a picture of luxury and opulence. It boasted one hundred horses for the clienteles' use. It was loudly touted as America's most luxurious hotel.

The grand opening of the Crescent was on May 20, 1886 and was a major event for Eureka Springs. From that time, for fifteen years to follow, the Crescent attracted people from around the world.

In time, as other hotels were built that matched and outmatched the Crescent, the hotel became a financial loss and was shut down.

In 1908, the empty hotel was opened as the Crescent College and Conservatory for Young Women. The college operated for sixteen years, but it eventually failed, also. In 1924, the Crescent building was empty again.

In 1930, it reopened as a junior college. But, after four years, it too closed. Following the junior college failure, nothing of significance occurred with the old Crescent Hotel until the summer of 1937.

In 1937, the wealthy, flamboyant Norman Baker bought the Crescent. He owned a radio station, KTNT in Muscatine, Iowa where, in 1934, he opened the Baker Institute. The institute boasted a reputation for successfully curing several medical ailments, among them, cancer. He became constantly criticized by the American Medical Association, claiming that many of his cures were not effective. He never had a license to practice medicine in Iowa. This prompted his move to Eureka Springs with his patients.

Feeling that organized medicine was working against him, he organized a relentless assault on the American Medical Association and big business in general, claiming that the medical field was interested in money, not saving lives!

Over the four year period in which Norman Baker operated his health resort in the old Crescent Hotel, about three hundred people under his care died. Other estimates are higher with the opinion that some of the bodies were buried in the area of the Crescent.

In 1946, a new group of financiers bought the motel and opened it again, with hopes of restoring the old landmark.

Today, it is noted as the most haunted hotel in the U.S. with apparitions, many of them, who were once cancer patients of Mr. Baker. Visitors have documented strange things happening to photos taken inside the hotel. Some photos have an extra being in them, not necessarily or easily identified as human! Even Michael, the young stonemason who fell to his death during construction, revisits Room 218. Visitors who have seen him say that he is a playful, happy ghost!

One little girl, visiting the hotel with her parents, was found talking to an invisible entity. Her parents couldn't figure out who the little girl could be talking to. There was no one else in the room! The little girl insisted that the lady was real and gave her parents a detailed description of her. After some research, the parents learned that the description matched that of Irene Castle, a once famous dancer, who frequented the hotel. She met her death at her home near the hotel in 1969!

Most other sightings are believed to have been those of patients of Norman Baker. The spirit of "Doctor" Baker, himself, is not uncommon. There are frequent reports of people milling around the hallways and grounds. One is a lady who always seems to be having trouble getting her keys out of her purse.