Hotel McCray (former) (Santa Cruz, California)

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Originally built in 1867 by Dr. Francis Kittredge as a modest two-story cottage, it underwent a series of transformations before its decline and eventual reinvention. Initially expanded by Kittredge’s sister-in-law into a larger property with orchards and an extension, it later became a hotel under various owners. By the early 20th century, it was acquired by James Phillip Smith, a trolley line owner nicknamed "Sunshine Jim," who renamed it Sunshine Villa to reflect his persona. The building, located on Beach Hill near the Santa Cruz Boardwalk, grew into a multi-story structure with a stucco exterior.
Its fortunes waned as car travel increased, reducing the need for local lodging and leading to neglect. During the 1960s, Alfred Hitchcock reportedly drew inspiration from its dilapidated, eerie appearance for the Bates Motel in Psycho, though some debate ties this to the Bernheim House as well. By the 1980s, it had fallen into disrepair, becoming a site for drug deals and even linked to a nearby brothel, according to local historian Russ Gibson. In 1987, architect Michael John O’Hearn purchased the property and restored it, transforming it into Sunshine Villa Assisted Living and Memory Care, a 124-resident facility that opened with a new facade and modern amenities.
The original hotel no longer exists as a hotel; its history is preserved in the current assisted living home, which continues to operate. Reports of hauntings—cold spots, ghostly voices, and blue lights—persist, fueled by its turbulent past, including alleged Satanist activity. The site’s evolution reflects both the economic shifts of Santa Cruz and its enduring cultural lore.