To encourage a wealthy tourist trade, the Caledonian Railway decided to construct a luxury hotel at Gleneagles; it was to be built with an associated golf course. A subsidiary company called Gleneagles Limited was set up in 1913 to manage the construction, but the outbreak of World War I caused suspension of the project during hostilities. The hotel was opened in 1924; during the construction process the railways of Great Britain had been "grouped" under the Railways Act 1921 and the Caledonian Railway was a constituent of the new London Midland and Scottish Railway (LMS); the Gleneagles Hotel passed to the ownership of the LMS.