History of Sun Valley

Union Pacific Railroad (1936-64)
The first destination winter resort in the U.S. was developed by W. Averell Harriman, the chairman of the Union Pacific Railroad, primarily to increase ridership on passenger trains. The success of the 1932 Winter Olympics in Lake Placid, New York, spurred an increase in participation in winter sports (and alpine skiing in particular). A lifelong skier, Harriman determined that America would embrace a destination mountain resort, similar to those in the European Alps, such as St. Moritz. During the winter of 1935-1936, Harriman enlisted the services of an Austrian count, Felix Schaffgotsch, to travel across the western U.S. to locate an ideal site for a winter resort. The Count toured Mount Rainier, Mount Hood, Yosemite, the San Bernardino Mountains, Zion National Park, Rocky Mountain National Park, the Wasatch Mountains, Pocatello, Jackson Hole, and Grand Targhee areas. Late in his trip and on the verge of abandoning his search, he was steered to the Ketchum area in central Idaho. A Union Pacific employee had mentioned that the rail line to Ketchum had cost the company more money for snow removal than any other branch line.
Schaffgotsch was impressed by the combination of Bald Mountain and its surrounding mountains, adequate snowfall, abundant sunshine, moderate elevation, and absence of wind, and selected it as the site. Harriman visited several weeks later and agreed. The 3,888-acre Brass Ranch was purchased for about $4 per acre and construction commenced that spring; it was built in seven months for $1.5 million.
Pioneering publicist Steve Hannigan, who had successfully promoted Miami Beach, was hired and named the resort "Sun Valley." (Count Schaffgotsch returned to Austria and was killed on the Eastern Front during World War II.)
The centerpiece of the new resort was the Sun Valley Lodge, which opened in December 1936. The 220-room, X-shaped lodge's exterior was constructed of concrete, poured inside rough-sawn forms. The wood grain was impressed on the concrete finish, which was acid-stained brown to imitate wood.

Challenger Inn (Sun Valley Inn)
The Swiss-style Challenger Inn (now Sun Valley Inn) and village were also part of the initial resort, opening in 1937. Hannigan wanted swimming pools at the resort, "so people won't think skiing is too cold." Both the Lodge and the Inn had heated outdoor swimming pools, circular in shape. Hannigan had the pools designed this way, unique at the time, in the hope they would be widely photographed, providing free publicity. It worked.