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Incorporated on August 27, 1923, the Salem Hotel Corporation began with a 52-member committee consisting of Salem business owners and philanthropists who all believed in the importance of building a hotel in the city. In July of that year, fundraising for the new hotel kicked off with a group of 175 volunteer businessmen, all strategically trained to sell stocks by the Hockenbury Co. of Harrisburg, Pennsylvania, which was brought in to manage the campaign. The volunteers were divided into 16 competitive teams. A rally was held at the Salem YMCA on July 16, 1923 to celebrate the beginning of the fundraiser. Daily meetings continued there to discuss sales results, which were posted on a large billboard in Town House Square. Results were also advertised in the committee’s “Ho! Tell!” literature. On the first day alone, $500,000 was raised, more than half of the original $750,000 goal. By the end of the week long campaign, the total raised was $527,000.

Following the fundraiser, planning for the new hotel began with location proposals. The Franklin Building, sitting at the corner of Essex Street and Washington Square was offered by the Salem Marine Society with the condition that a room would be built on the hotel’s roof for exclusive use by the Society. This proposal beat out a suggestion to build across from the police station, at the corner of Front Street and Central Street.