Leasing the land for the hotel from Charley Thorley, (who in turn was leasing it from Henry Dolan) the Pabst Hotel's lot sat at the intersection of Broadway and Seventh Avenue. Its architect, Henry F. Kilburn then built a nine-story structure with hotel rooms on the third through nine floors and a restaurant and rathskeller on the lower floors and basement. While the rathskeller exceeded the property lines lawfully, a portico built for the restaurant did so illegally. While commonly done, this would be something the Pabst Hotel would come to regret.

Opening November 11th, 1899, the Pabst Hotel found steady business as a bachelor's hotel and rathskeller. But suddenly, the Pabst found itself with a surprising enemy. The New York Times began ferociously attacking the Pabst for its illegal portico. While the portico was indeed illegal, it was odd that the paper would so rabidly pursue one single violation when the practice was fairly common. Nor did the Times let up.

Beginning in July of 1900, the New York Times published dozens of articles and editorials demanding that the city remove the portico at the hotel's expense. However, the hotel's manager Regan ignored the articles and the city officials had no motivation to go after this violation over all the others. Numerous delaying tactics were put into place and it wasn't until 1901 that a judge ordered the portico removed. However, Regan and Thorley immediately appealed the decision.

While the Pabst Hotel was fighting its portico battle with the Times, its demise was sealed in a different way. During the construction of the New York subway, the Times publisher Adolph S. Ochs had been campaigning for a subway stop at 42nd Street. The Subway had then purchased the neighboring property to the Pabst Hotel. However, in April of 1902, the Subway took possession of the Rathskeller, the underground beer hall where the hotel sold Pabst beer. With that, the Pabst corporation gave up, claiming this meant that the lease they had with Thorley was void (they would also later sue him.)

What happened next offers some insight into the New York Times singling out of the Pabst. Adolph S. Och's purchased the Eno land from the subway corporation and leased the Pabst from Thorley. The Times then announced it was giving up its long-time home and building a new tower on Longacre square. The Times had won their war against the Pabst Hotel.

When the Pabst Hotel was demolished in November of 1902, it was the first building supported by a steel structure to be fully demolished.

In its place, the Times Tower dominated the eponymous square.