The hotel burned down in 1920 it was replaced a few years later by the smaller Hot Springs Club. The Montecito Hot Springs Hotel was built near the largest of the springs, in a canyon north of the town center and directly south of Montecito Peak, in Hot Springs Canyon. Desirable weather and several nearby hot springs offered the promise of comfortable, healthy living, in addition to the availability of affordable land. It was near enough to Santa Barbara for essential services while still being secluded. Around the end of the 19th century, wealthy tourists from the eastern and midwestern United States began to buy land in the area. Finding an area reminiscent of Italy, they built farms and gardens similar to those they had left behind. By the end of the 1860s, the bandit gangs were gone, and Italian settlers arrived. In the middle of the 19th century, the area was known as a haven for bandits and highway robbers, who hid in the oak groves and canyons, preying on traffic on the coastal route between the towns that developed around the missions. The Spanish arrived in the 18th century but left the region largely unsettled while they built the Presidio and Mission Santa Barbara farther west. The site of present-day Montecito, along with the entire south coast of Santa Barbara County, was inhabited for over 10,000 years by the Chumash Indians.
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