The 1951–54 extension of Lake Shore Drive from Foster Avenue to Hollywood Avenue reduced direct access to Lake Michigan, leading to a reduction in business. This roadway was built on landfill in the area that had been the private beach for the hotel. While new public beaches serving the Edgewater neighborhood were eventually created, they did not replace the hotel's own beach. After the hotel was cut off from the lake by the new drive, a swimming pool was added in 1953. In 1960, in order to compete with popular downtown hotels, the Edgewater Beach underwent a $900,000 renovation which included the installation of air conditioning. Approximately 30% of rooms, including restaurants and public spaces of the hotel, were fitted with air conditioning. By 1961, that number rose to nearly 70%.