With tourism increasing on the Outer Banks, developers began hotel construction. The Nags Header Hotel, a three-story oceanfront structure built at Milepost 11 for $20,000, opened in May 1935. It was billed as the Carolina coast's finest hotel. Amenities included a bath in every room with hot and cold running water. The hotel burned to the ground October 28, 1978. The author's grandfather, George C. Culpepper, Sr., owned the hotel from 1944 to 1970.