Shortly after the first World War, the city of New Braunfels sought to include a world-class hotel among its attractions to Texas visitors. Walter Faust Sr., one of New Braunfels' business leaders, first opened the doors to this hotel - originally called the The Traveler's Hotel - in 1929. Located near the rail lines that converged nearby, this hotel soon became a central meeting place for business travelers from across the country.

When the Great Depression came, New Braunfels struggled through hard times with the rest of the country, and was particularly devastated by the boll weevil blight. This blight crippled the textile industry in the city, on which much of the city's economic welfare was dependent.

Despite these hard times, The Traveler's Hotel remained open, mainly due to the determination of Walter Faust Sr.. The hotel was renamed the Faust Hotel in 1936, just prior to the second World War. During the war the hotel was maintained by the reputation it had gained as the "honeymoon capitol" of Texas. Soldiers stationed at nearby military bases used the Faust Hotel as a location for committing to their brides before being shipped off to fight in the war.

Soon after World War II, the hotel was purchased by Arlen Krueger who, unfortunately, was unable to make it a successful venture. For the first time since 1929, the Faust Hotel was forced to close its doors in 1975 and the condition of the property was neglected. The Faust would not be forgotten, however, and in 1977 it was purchased by Jackson-Houser and Associates. The physical appearance of the building was dismal. the exterior was blackend and several windows were broken. The dining room floor had been damaged by water and the kitchen equipment was lost. Most of the furniture remained, however, though some disappeared during restoration.

Renovation included reparation of the floors and waterblasting of the exterior. The inside was freshly painted and carpeted and air-conditioning/heating window units were installed throughout the hotel and in every guest room.

The Faust reopened in August 1977 under the management of Rex Cole. From 1978 to 1979 Stephen Harmon managed the hotel until its sale to Roy Gates and Richard Fuqua of Palm Valley Equipment, Inc. in 1979. These new owners enclosed the small courtyard to make a lounge in 1980. In June of 1982, Palm Valley Equipment, Inc. - along with all of its holdings, was purchased by John H. Roberts, Jr., a San Antonio entreprenuer.

Soon after he bought the hotel, Mr. Roberts began an extensive restoration. Once again the exterior was waterblasted. The front grounds were landscaped and the back parking lot repaved. New carpets and drapes were installed. An elaborate fire/smoke alarm system was installed throughout the building. The kitchen was expanded to more than twice its previous size and new, modern equipment replaced the less than efficient relics of yesteryear. Throughout the renovation, extreme care was taken to preserve the hotel's original beauty. In February of 1985, the Faust Hotel hosted a celbration to dedicate its recently acquired Texas Historic Landmark Plaque and an application for placement on the National Register of Historic Places has been approved on state level and forwarded to Washington, D.C..

Today the property shows its age, but also offers endless charm to guests. Though renovated, the hotel has maintained the decor and panache of the 1930s. Within the hotel visitors can find finely crafted antique furniture, a beautiful mirrored elevator, artwork from the period, an antique grand piano, and even a vintage microbrewery. The reknowned Texas hospitality has remained a staple of the hotel's attraction as well.