The original building with its three floor levels and tower was constructed in 1879 and named “San Jose”, by Joseph (Jose) Guillermo Hay, an official in the Lands Department, who had received a grant of 300 acres at Lawson the previous year.
In the 1880s Hay took advantage of the Mountains’ new and growing reputation as a health and recreation retreat, and by 1882 the name “San Jose” had the words “The Blue Mountains Sanatorium” added to it and described in a local guidebook as “the best for private families” and “with grounds laid out with romantic paths in all directions”.
In 1889 Hay applied for a publican’s licence for the property then known as “Hay’s Family Hotel”, described as having fourteen rooms for public use.
During the 1890s the property was acquired by John Ralston who ran it as a guesthouse known as “The Palace” for the next two decades until, in 1919, it eventually took the name and function for which it is best known.
The original Stratford School was founded in Lawson in 1915 by Miss Effie Townsend Wiles, known as Edith, who began classes with six pupils in a rented cottage named Tahlia, on the Bathurst Road as the highway was then known. By 1919 the old cottage was “bursting at the seams” and a move became imperative. The school made the move across the highway and railway line taking the name “Stratford School for Girls” with it. In 1924 Miss Wiles and her sister, who was also a member of staff, purchased the building from the Ralston estate and were then able to make additions and alterations to accommodate the school.
When Miss Wiles died in 1930, the enrolment was 49 girls of which 31 were boarders, five girls sat for the Intermediate Certificate exam and two girls sat the Leaving Certificate. Control then passed to the Stratford School Council and subsequently, in 1936, to the Church of England, and the school entered its heyday as “Stratford Church of England School for Girls”.
In 1966, the building was sold to a Sydney couple, who refurbished the interior to house wedding receptions, dinners and private patties. The establishment lasted until the late 1970s, when in 1977, the Blue Mountains Community School moved in with 18 students, a new teacher and Government grants for a library and mini-bus.
By 1980, the building was owned by brothers Lionel and Vivian Coleman of Sydney, but there would be no more tenants for Stratford. On June 4, 1980, as the result of an electrical fault, the building was gutted by fire. Today, the only reminder of Stratford’s former glory is a large stenciled sign on the building's tower, the rest has gone. The remains of the building, except for the tower section, were demolished by a developer in the early 1990s. No further move has been made, at the time of writing, to develop the site, which is listed on the local heritage register.