The Prospect House was situated at the foot of Blue Mountain, on a point of land jutting out into the lake, and from its broad piazzas a panoramic view with a wide and sweeping range of the surrounding scenery. The hotel had a frontage of 255 feet facing north, with a wing extending 150 feet to the south, and was surrounded by a piazza 20 feet in width. It contains 260 large and airy rooms, each one of which is lighted with the Edison electric light. It was the first hotel in the world with an electric light in every room.

 The hotel held carnivals and tournaments such as guide boat races. There were games that included sac races, tugs of war, greased pole climbing, and tub-races. Often the ladies would compete with the men in shooting contest, the gentlemen shooting at 100 yards and the ladies at 50 Yards.

 Among the guests were Astors, Tiffanys, Whitneys, Vanderbilts, Pierreponts, Macys, Mellons, Colgates, Lippincotts, Roosevelts, Juilliards, Clevelands, Polks, Colts, Vassars, Rothschilds, Huntingtons, Schuylers, Van Rensselaers, Delafields, Biddles, Harrimans, Auchincloss's, Garrisons, Bloomingdales, Stuyvesants, Rikers, Osborns, Westinghouses, Fahnestocks, Drexels, Hirschorns, Schwabs, Guggenheimers, Woolworths, and many others.