The guesthouse was originally named Centaur House in memory of the Australian hospital ship Centaur. The ship was torpedoed and sunk by a Japanese submarine fifty miles off the coast of Brisbane on 14th May 1943, during World War11. Of the 332 persons on board, only 64 survived.
The land was first purchased in 1929, then transferred to the Townsville hospital for management by its trustee’s. The original building was constructed in 1946 and opened in 1947 as a holiday hostel for nurses. Nurses from the Townsville region were able to visit Magnetic Island and stay at the hostel for a small price. Later, this offer was extended to include any registered nurse in Australia.
In 1963, recognising the need for more accommodation on Magnetic Island, the property was leased out and converted into a guesthouse for tourists.
The property was subsequently sold to private enterprise in 2006. The new owners undertook a major redevelopment by adding new facilities, updating the amenities and modernising the rooms.