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Hotel Mac Rae is the original idea of a resort began in 1887 when a businessman named George Chato bought the island from Grand Rapids, Michigan. The island lived in Native Americans for more than 7,000 years and was first discovered by Europeans in 1542, when Juan Rodriguez Cabrillo named it San Salvador and claimed to be Spanish. Sixty years later, another Spanish, Sebastian Viscano, gave the island its current name. Hotel Mac Rae Under the rule of Mexico in 1822, Thomas Robbins was awarded the island in a land grant in 1846. During these early days, the island was used for ranching, mining, and even was taken over by the military during the civil war.