The original Molloy was built in the 1950s by T.B. Molloy, who relocated to Treasure Island from McMinnville, Tennessee. In 1969, the original windmill cottages were torn down and replaced with the main building that still stands today. T.B. Molloy sold the newly expanded Molloy Motel and Cottages in the 1970s.

The property changed hands again in 1979, when it was purchased by a German couple, Ernst and Birgit Schwegel. For nearly 40 years, the Schwegels lovingly operated The Molloy—Ernst oversaw the maintenance and upkeep, while Birgit managed the front office. Over the decades, they built a loyal community of guests and friends who returned year after year.

In 2019, Ernst and Birgit passed the hotel on to their grandson, who had spent many of his childhood summers at the property. Now at the helm, he remains dedicated to honoring his grandparents’ legacy while reimagining The Molloy for a new generation of guests.