The Limelight Hotel originally opened in 1950 as a three-room lodge and dinner theatre, called Ski & Spur. Later, the property was purchased by musician Glenn Yarbrough. He renamed it the "Limelite Lodge" after his folk band, the Limeliters. The hotel stage played host to such stars as Judy Collins, the Smothers Brothers, and John Denver over the years.
In 1962 the property was purchased from Yarbrough by the Paas hotelier family. In 2005 the hotel was razed, rebuilt, and renamed The Limelight Hotel. In April 2010 the hotel was sold once more, to Aspen Skiing Company, who continues to own the property today.