Edward O'Donnell's house Lockinge stood on this site from ca. 1881-1937. Following O'Donnell's death the house was put up for auction on Tuesday 6 August. On auction day it was passed in but later purchased by Margaret Carter sometime in late 1935. Initially she ran it as a guest house with Lorna Beale as its manager. In 1937 Harry Raymond Johnson architect, then City of St Kilda Councillor for West Ward, was employed to design a new modern hotel for the partnership. By the beginning of October 1937 the 'luxurious' Gatwick Hotel was being advertised as 'only just built' and proudly announcing that it's Oriental chef was Alex Julius.