After the rails of Indian Valley Railroad were torn up in 1940, the company sold the Feather River Villa to Harvey M. Toy.
He owned a chain of impressive hotels all across California. By buying the Feather River Villa, he included it in California's elite hotels.
This reputation brought people from all across the state. He then called it "Rainbow's End".
In addition to the luxuries already offered, guests could now visit the in-house barber and hair dresser, do their laundry, and even have it dry-cleaned. Swedish massages and steam baths were also available in the bath house by the river. In addition to all this, rates remained low at about $3.50 x room x night.
The manager of the hotel was a licensed gold buyer. He invited its guests to pan for gold to pay for their stay. Over $11 million worth of gold was mined for this reason.
Extreme luxury was the hotel's theme, but there was a darker side to it. It was rumored that the upstairs rooms were being kept as bordellos, and illegal gambling houses.
Toy decided to sell the hotel in 1950.