Beau Hotel brings new life to Al Capone’s former Gaslamp hideout

One of San Diego’s oldest surviving buildings—once rumored to host secret poker games led by Al Capone—has entered a bold new chapter.

Formerly the Leland Hotel, the 138-year-old Victorian Italianate structure at Fifth Avenue and Island in the Gaslamp Quarter has been meticulously restored and reopened as The Beau, a boutique hotel and gathering place that embraces its colorful history while stepping confidently into the future.

Built in 1886 by early San Diego developers D.C. Reed and Aaron Pauly, the three-story building originally opened as the Rand-Pauly Building. The upper floors housed the Leland Hotel, while the ground level was home to commercial tenants. At the time, the area was still known as New Town San Diego—a far cry from the bustling entertainment district the Gaslamp Quarter is today.

Through the decades, the building evolved with the times. In the 1950s, a modernization effort stripped away much of its historic charm: ornate window moldings were removed, and the brick façade was covered in stucco. Still, the bones of the original building remained intact beneath the surface.

By the late 1990s, however, the once-grand structure had fallen into disrepair. In 1999, preservationist A. Leon Herrick purchased the property and began restoring it. He renamed it Beaumanor, after his ancestral family home in Leicestershire, England, deeded to the Herricks by Queen Elizabeth I in 1595. His initial focus was on seismic retrofitting and structural preservation.

When Leon’s health declined, the responsibility passed to his daughter, Cathy Herrick, a pioneering preservationist in her own right.

“It was my dad’s favorite building,” Cathy Herrick said. “I didn’t want it to leave the family. It felt like I was preserving not just a building, but his legacy.”

She has become one of the district’s leading forces in historic preservation—the only female redeveloper in the Gaslamp Quarter and the steward of 10 nationally registered, award-winning properties. Her name is inscribed at the base of the Gaslamp Quarter Arch at Fifth and L, honoring her ongoing contributions to the neighborhood’s revival.

In 2010, she officially took ownership of the Beaumanor building, and in 2023, she launched a $5 million renovation to return the property to its 19th-century glory. The renovation included full restorations of the original hotel rooms—now 52 in total—common areas, the rooftop secret garden, and the ground floor restaurant and bar.

Much of the work focused on uncovering what time and mid-century trends had been buried. Original brickwork was carefully revealed after being hidden for more than 70 years. Period-appropriate windows and fixtures were reinstalled. Some bricks even came from Coronado’s PB&Y Co., selected to match the historic materials.

The crown jewel of the restoration is The Bar at the Beau, which opened in May. The space blends dark, gilded touches with soft lighting and understated elegance. The original 1886 back bar remains in place—now accented with gold leaf filigree and a Carrera stone countertop with underlighting.

According to Cathy Herrick, the building’s lower level—now called Smuggler’s Alley—was once a Prohibition-era speakeasy. Rumor has it that none other than Al Capone hosted secret poker games there.

“It was a speakeasy, a hidden place with its own energy,” she said. “Now we’ve brought it back—not just cosmetically, but in spirit.”

Inside The Beau, curated photographs and archival images track the property’s long story—from its Gilded Age beginnings to its role in Prohibition to its mid-century transformation. One historical photo shows the original Leland Hotel before its 20th-century remodel.

The bar’s cocktail menu pays tribute to that layered past. Guests can order drinks like the “1886 Old Fashioned” or the “Night Porter,” a bold espresso martini that nods to the building’s rumored late-night past.

The kitchen, led by Executive Chef Robin James (formerly of Top of the Market), offers a menu of elevated American comfort food. Signature dishes include Duck Pot Pie, Braised Pork Shank, and Whole Roasted Branzino, while small plates like Beef Cheek with crispy chickpeas and Chilled English Pea Soup offer inventive touches. Desserts include a playful Beau Sundae and a nostalgic Pineapple Upside Down Cake. Overseeing hospitality is the new Director of Food & Beverage, Jesse Pennington.

The Beau remains a family-run property. Cathy’s son, Evan Anderson, now serves as Executive Vice President of her company and oversees day-to-day operations across their hospitality portfolio, including this one. Staff report directly to him, ensuring that three generations of vision are reflected throughout the building.

Over the years, the structure has housed a wide range of tenants: a milliner and dressmaker, a tailor, a moving and transfer company, an insurance office, and even an undertaker. Now, nearly 140 years after its debut, it serves once again as a gathering place—this time with a renewed sense of style and purpose.

“Restoring The Beau was never just about business,” Cathy Herrick said. “It was about honoring the history, my dad, and this neighborhood that has given us so much.”

Maybe Al himself would appreciate this new version even more.