HistoricSiteMarkers
Progressive & Modern Era

City Hotel

La Coste, Medina County, Texas

Marker Inscription

Built in 1912 by Alsatian immigrant and prominent local developer Emil Schmidt, the City Hotel offered public lodging previously unavailable to visitors to La Coste. Its proximity to the railroad depot made it an ideal location to offer food and lodging to the growing number of visitors and business people involved in sales, expansion of the railroad, and the building of a dam in northeastern Medina County. The elegantly furnished rooms, verandas, and restaurant and ready clientele combined to make the hotel and restaurant an immediate success. Gus and Maggie (Ma) Keller bought the property in 1928 during the National prohibition against the sale of alcoholic beverages. They nevertheless ran a saloon in the hotel known as "Kellers Place" which according to local tradition allowed patrons to gamble and drink in a back room, an activity which because of timely telephone calls avoided police detection. Maggie, who managed the saloon for almost four decades, became the subject of local legend. One of the saloon's most prominent features was the large number of bottle caps which covered its walls and ceiling. The hotel is a local landmark recognized by generations of people traveling through or visiting La Coste. 1994

Erected by Texas Historical Commission

The Story

Alsatian immigrant and local developer Emil Schmidt built the City Hotel in 1912, bringing public lodging to La Coste for the first time. Its spot near the railroad depot made it a magnet for the salesmen, railroad crews, and dam builders passing through, and its verandas and restaurant were an instant success. Under Gus and 'Ma' Maggie Keller after 1928, its back-room saloon—famously dodging Prohibition raids through well-timed phone calls—became the stuff of local legend, its walls and ceiling covered in bottle caps.

Why it matters

The hotel captures how the railroad reshaped small-town Texas commerce, and its Prohibition-era saloon preserves a colorful chapter of everyday resistance to national alcohol laws.

The story behind this marker

AI context

The era

Medina County, west of San Antonio, has a distinctive heritage. In the 1840s it drew a wave of settlers from Alsace, the borderland between France and Germany, through the colonizing efforts that founded nearby Castroville. Their descendants and later Alsatian immigrants gave this corner of Texas a cultural flavor found almost nowhere else in America, from architecture to family names.

In the early 1900s the railroad was what made or broke a small Texas town. Towns along the tracks became shipping points and stopping places, and the depot was the busiest spot in town, crowded with salesmen, freight agents and travelers. La Coste was one of those railroad towns, and the need for somewhere to put up visitors overnight came with that traffic.

The early twentieth century was also a time of huge public works in Texas, especially for water and irrigation. The marker points to dam construction in northeastern Medina County, which brought crews and business people through the area. Most likely this was the great Medina Dam project of those years, and a project of that size could fill a small town's rooms for a long time.

Then came Prohibition. Texas went dry statewide just before the national ban, which ran from 1920 to 1933. Selling alcohol became illegal across the country, but drinking never really stopped. It moved behind closed doors, into back rooms, and into the realm of local legend.

People & events

The hotel began with Emil Schmidt, an Alsatian immigrant and prominent local developer, who built it in 1912. Before that, La Coste had no public lodging at all, so a visitor arriving by train had nowhere to stay. Schmidt built close to the railroad depot and put in elegantly furnished rooms, verandas and a restaurant. With a steady flow of travelers already arriving, the hotel succeeded right away.

In 1928, in the middle of Prohibition, the property passed to Gus and Maggie Keller. The Kellers ran a saloon in the hotel all the same. It was known as Keller's Place, and local tradition says a back room hosted drinking and gambling. Tradition also says the operation survived because of well-timed telephone calls, warnings that came just ahead of the law, so that by the time officers arrived there was nothing to see.

Maggie, whom everyone knew as Ma, ran the saloon for almost four decades and became a figure of local legend. The marker doesn't give us the details of her life, and we shouldn't invent them. A woman who ran a bar through Prohibition and decades afterward clearly made a lasting impression on her community.

The saloon's most memorable feature was its decoration: a huge number of bottle caps covering the walls and ceiling. Each cap was a small leftover of a drink someone had, and together they built a homemade monument to years of good company.

Its place in the American story

The City Hotel tells, in miniature, how railroads built small-town America. In the early twentieth century, depot-side hotels went up in thousands of towns to serve the traveling salesmen, workers and visitors the trains brought in. Many of them have since disappeared, which makes surviving examples valuable reminders of how Americans once traveled and did business.

The hotel is also tied to the immigrant story. Emil Schmidt's Alsatian roots link the building to one of the more unusual European settlement chapters in Texas, a reminder that the state's population was far more varied than the cowboy image suggests.

Above all, Keller's Place shows Prohibition as most Americans actually lived it. The national ban was meant to dry out the country, but across the land, small-town saloons, speakeasies and back rooms kept running, often with quiet help from neighbors. The story of warning phone calls is a homegrown version of a pattern that helped convince the nation that Prohibition could not be enforced. It was repealed in 1933.

If you visit

La Coste is a small town west of San Antonio, and the City Hotel is just the kind of landmark that gives a place its identity. Look for its relationship to the railroad. The hotel's whole reason for existing was its closeness to the depot, and you can still picture travelers stepping off the train and walking straight onto its verandas.

As you take it in, imagine the building in its different lives: a brand-new hotel full of salesmen and dam workers, then a Prohibition-era refuge where a ringing telephone could send everyone scrambling, and finally a beloved local institution under Ma Keller. For generations of people passing through La Coste, the hotel has been a familiar and welcome sight.

Pair your stop with nearby Castroville, the heart of Medina County's Alsatian heritage, for a day of exploring this unique corner of Texas. The countryside here, at the edge of the Hill Country, makes for a lovely drive, especially if you take the back roads instead of the highway.

Written by AI to add context, grounded in the marker’s inscription and the historical record. The inscription above is the original, unaltered text.

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Related people

  • · Emil Schmidt
  • · Maggie 'Ma' Keller
  • · Gus Keller

Themes & tags

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