In 1958 the State Government declared Point Lookout a tourist area. The following year tenders were called for the construction of an hotel there. Two tenders were submitted, one by A.H.Clayton and the other by K.W Waller and A.E. Rackley. Clayton estimated costs at 14,750 pounds. The Licensing Commission rejected both tenders as unsatisfactory. Tenders were called for a second time and the successful tenderers, Brook and Durbidge, were offered Cylinder Headland or Adder Rock Headland as the site on which to build. However, they favoured another site above Home Rocks because it was remote from what was then the settlement of Cyylinder Beach and the construction would intrude less upon the landscape. Also, water was available from a nearby spring. The Government granted the Home Rocks site. ..The licensee was Vic Brooks.
Originally the road ran around the front of the hotel. High tanks filled with water pumped up from the spring in the valley below held the hotel’s water supply and stood where the main road now runs through.