HIGHLANDS, N.C. — At first glance, the three-story red brick and rock Old Edwards Inn on the corner of Main and Fourth streets appears much the same as it did when it opened in 1935 as the Hotel Edwards.

But look closer: The landmark inn in this popular Western North Carolina mountain resort town has emerged from an extreme makeover.

courtesy of Old Edwards Inn (ENLARGE)
The signature floor-to-ceiling stone fireplace from the Old Edwards Inn remains in the lobby of the newly renovated and renamed Old Edwards Inn and Spa.
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IF YOU GO • Getting there: Highlands, N.C., is about a 130-mile drive from Atlanta. Take I-85 north to I-985, then continue as the highway changes to Ga. 365 and U.S. 441. After driving through Dillard, turn right on Ga. 246, which becomes N.C. 106 after it crosses the state line. Turn right at the light on U.S. 64/N.C. 28 and proceed to Fourth Street. The Old Edwards Inn and Spa will be on the right at 445 Main St. • Rates: Tariffs vary by season (high season is Memorial Day through Labor Day, the month of October, and holidays). Inn rooms, $215-$295; inn suites, $255-$375; spa suites, $535-$595; luxury suite, $750-$850; cottages, $1,625-$1,800; and Farm House, $850-$1,250. • Dining: Breakfast (for guests only), house breakfast, free; a la carte selections, $6-$16. Lunch, $11-$16. Dinner, first courses, $12-$18; entrees, $26-$38; cheese course, $7-$8; dessert, $8-$10. Wine garden, $5-$13. • Spa: Open 9 a.m.-9 p.m. Skin care, $60-$180; body care, $65-$250; Carolina Cocoons, $125; massage, $90-$155 ($250 for two); spa packages, $180-$540. Nail and hair care, waxing and makeup available. • Information: 1-866-526-8008, Web site. A LODGING LANDMARK A brief history of the Central House and Old Edwards Inn: 1878: Central House, Highlands' earliest boardinghouse, was built on property purchased by John Norton. 1888: David Norton purchased the property, and for the next 17 years, Norton and his wife, Martha "Mattie" Adams, better known as Uncle Dave and Aunt Mat, managed Central House. 1893: Norton established the post office in the granite store on the property, also known as the Stone Store House and, later, the Rock Store. 1905: Norton sold both the Central House and the Stone Store House to "Uncle Billy" Potts, whose wife, Martha "Mattie" Ammons, took in boarders. 1913: Uncle Billy sold Central House to the town's police chief, J. Grover "Diamond Joe" Edwards and his wife, Minnie Zoellner Edwards. 1925: Minnie hired Will Cleaveland to build a two-story addition to Central House and raise two dormers in the roof of the main building. 1934: Minnie hired Wilton Cobb, a local builder and owner of the hardware store across the street, to build a three-story hotel on the site of the old Rock Store. Keeping the store as its foundation and lobby, architect Linton Young designed the brick and stone structure. 1935: The Hotel Edwards opened. Minnie ran the Edwards as well as the Central House. 1950: With Minnie's health and eyesight failing, the inn was leased to a string of management teams but closed in the mid-'60s. 1982: Rip and Pat Benton of St. Simons Island bought and remodeled Central House and the former hotel. Central House was operated as a restaurant. 2001: Art and Angela Williams of Atlanta acquired the inn and restaurant. 2004: The Old Edwards Inn and Spa open as a part of the Old Edwards Hospitality Group LLC. — Sources: Old Edwards Hospitality Group and "Heart of the Blue Ridge: Highlands, North Carolina" by Randolph P. Shaffner

After a $40 million renovation and expansion that took more than two years, the inn reopened in July as a 30-room luxury destination spa resort that blends traditional Southern hospitality with 21st-century sensibilities for the discerning traveler.

Owner A.L. "Art" Williams, a South Georgia native who made a fortune in term life insurance, welcomed the first guests into the lobby July 7 boldly declaring that "this opening ushers in a new era for Highlands" — a change that some residents may not be eager to embrace.

Although work on finishing touches continued early this month, the newly polished lodging, rechristened the Old Edwards Inn and Spa, is now poised for the fall season.

The adjoining Central House, built as a boardinghouse in 1878 and more recently operated as a restaurant, is now Madison's, the resort's fine dining room. Outside is the Wine Garden, where guests can order small plates and tapas and sip wine or cocktails while listening to a rushing (albeit man-made) stream that splashes through the garden. Next door, on the courtyard, is Acorns, an upscale antique and home accessories boutique featuring a Lilly Pulitzer Signature Store.

The expansion up the hill along Fourth Street and around the corner on Church Street blends quite seamlessly with the original complex, which is listed on the National Register of Historic Places.

The new space houses an elevator to serve the original inn, common areas for guests, including a rooftop lounge area with outdoor fireplace; and the European-influenced spa and four individually decorated guest suites (one in tribute to golf great Bobby Jones) with private elevator access to the Spa at the Old Edwards Inn. Across the street from the inn, the Spring Street Cottages, two three-bedroom houses with English manor house decor and screened porches, provide plenty of room for families, couples or small-group retreats.

Additionally, Williams' Old Edwards Hospitality Group has acquired the adjacent Kelsey & Hutchinson Lodge (there are plans to renovate the lodge and cottages) and Rib Shack (formerly the Highlands Diner), a casual restaurant specializing in baby back ribs, barbecue and chicken.

Old Edwards also owns the Farm, a special events facility a mile outside town that features 33 acres of landscaped gardens with a wedding lawn and all-white garden, an event lawn, a renovated barn for meetings and receptions, and a three-bedroom farmhouse.

In 2005, further expansion will include a state-of-the-art theater/auditorium and a European-style bakery across Fourth Street as well as a 7,000-square-foot addition to the spa that will accommodate a fitness center, men's and women's locker rooms, Swiss showers, steam rooms, sauna, solarium and Spa Cafe.

The local buzz

Not surprisingly, all this hoopla — not to mention the noise and disruptions caused by the lengthy construction that is expected to continue well into next year with phase two — has caused a bit of a stir among townsfolk.

"You'll find two sides," says Randolph P. Shaffner, author of the local history book "Heart of the Blue Ridge: Highlands, North Carolina" and owner of Cyrano's Bookshop on Main Street.

"Some feel it's trying to change the direction of Highlands. Highlands has always focused on people who love the outdoors — hiking, waterfalls, the active life. The new owners have emphasized the spa. I think they've used the term 'pamper' a lot.

"Then, there are others who think the inn will be a boon to Highlands because it will bring in people throughout the year. Some [business owners] feel it will bring in a higher caliber of customer."

The bottom line, says Shaffner: "Some of it is the fear of what might happen to Highlands."

Real estate broker and Highlands native Isabel H. Chambers — whose family history is entwined with the inn — can understand the concerns about having a posh resort in town.

Chambers' great-great-grandfather David Norton once owned Central House, and her grandparents were married there in front of the fireplace in 1895. In 1951, the Central House was the setting for her wedding rehearsal dinner.

"We were just a quiet little mountain town. The question is: Do we want to be better than we were in the past? It has to change. It can't stay the same or it will fall down. . . . To have progress, we have to have these things."

She says that the project has taken a frustratingly long time, "but maybe that's what it takes to be perfect. [Williams] has spent a lot of money. It sort of puts the rest of us on our toes. We have put up with a lot, but I think it will pay off. I do want him to succeed."

Aiming for the top

Clearly, Williams — a two-time state high school football coach of the year before getting into insurance — knows the importance of putting together a winning team. At Kendrick High School in Columbus, he built a newly formed team into champions in only three years.

In his quest to create a world-class resort, he brought in some of the top design firms in Atlanta, including architects Summerour and Associates; the Johnson Studio, which handled the restaurant design; interior designer Jack DeLong for the Inn and Farm interiors; Barbara Westbrook of Atlanta's Westbrook Interiors for the spa design; and landscape architects Planters Inc.

Mario C. Gomes, a 30-year veteran of the hospitality industry who held senior positions with Omni Hotels in Atlanta for two decades, was hired as chief executive officer and general manager. Spa director Lynne Girard, who has 17 years in the spa business, came from Fort Lauderdale where she co-owned a day spa and most recently was office manager for a reconstructive surgery group.

Executive chef Francois J. Ternes was lured from the Grand Floridian Resort and Spa in Orlando, where he was catering chef for more than nine years. Before that he was executive sous chef at the Doral Golf Resort and Spa in Miami and executive chef of the Crescent Hotel in Phoenix.

A mountain haven

But impressive résumés do not a top-tier resort make. It's the guest experience. And as lovely as the exterior is, with flowers tumbling from window boxes on wrought-iron balconies, it's what's inside that counts.

It was drizzling when we arrived for a recent two-night stay. At the Fourth Street valet entrance, a smiling attendant was out the door to whisk luggage inside and accompany us to a second-floor suite with a balcony overlooking the tidy, white-frame Highlands Inn, circa 1880, across Main Street. If you're in the mood for a little bubbly, champagne is offered at check-in in the lobby, which is warm and inviting with comfy seating areas, dark woods, Oriental carpets on hardwood floors, wrought-iron chandeliers, a stone fireplace and fresh floral arrangements.

The room key is on a keychain with a custom-made bronze acorn — the symbol of the inn seen on everything from the stationery to the molded butter at Madison's. Acorn print fabrics in earthtones figure into the decor of my room, Druids Glen, but each room is decorated differently — with nary a quilt in sight.

All rooms feature period antiques, Frette linens, and baths with plush towels and bathrobes, heated flooring, rainfall showers and Bulgari toiletries. The electronics are state of the art: plasma TVs, DVD players and universal touch-pad remote control systems that control climate, lighting, music and television.

One can only imagine what Minnie Edwards, who ran the original inns for four decades until the early '50s, would make of the changes.

Dining in style

A leisurely lunch at Madison's set the relaxed tone of the visit. An appetizer of Maine lobster bisque and a special of pan-seared pork with roasted corn, tomato, garlic and Carolina ham salsa over fried green tomatoes with pepper au jus hit the spot on a chilly gray day.

Guests are offered a complimentary house breakfast of seasonal fruit, homemade granola, fresh-baked breads, fresh-squeezed orange juice and coffee or tea at Madison's. Other selections, available at additional cost, including cornmeal pancakes with lemon curd and wild mountain blueberries; eggs any style with applewood smoked bacon, Grafton cheddar grits and Sally Lunn toast; and, my favorite, omelet with wild mushrooms, asparagus and fontina cheese, served with country hash browns.

Don't miss the signature Carolina High Country cuisine during dinner at Madison's, a casually elegant space with Oriental carpets on stone floors, fine fabrics, leather, wicker, antiques, Frette linen tablecloths and napkins, Bernardaud china, Christofle silver and Riedel stemware.

An exquisite dinner by candlelight was exceptionally prepared and presented by an attentive staff. The meal began on a strong note with appetizers of pan-seared veal sweetbreads with Vidalia onion cream and crispy shallots and oven-poached day boat scallops served with butter-braised cabbage and smoked salmon. Our entrees included butter-poached Maine lobster with sweet pea risotto and carrot broth and Madison tenderloin of beef atop creamed spinach and potato confit. To complement the selections, we chose bottles of Markham Vineyards 2001 chardonnay ($38) and Duckhorn Vineyards 2001 merlot ($86) — both Napa Valley wines — from the extensive wine list.

If you're craving something a bit more downhome, stroll up the hill for a fit-for-a-mountaineer repast of ribs, baked beans, coleslaw and iced tea at the Rib Shack — perfect after a typical Highlands day of chasing waterfalls, hiking or power shopping on Main Street.

The ultimate escape

For a one-of-a-kind experience, slip off to the boutique spa for the exotic and indulgent Rainforest Rejuvenation Ritual, which you can enjoy alone or with a partner. After changing into a spa robe and sipping a cup of herbal tea, you step inside a custom-designed, flower petal-shaped room.

Although the treatment is self-administered, an attendant presents a tray with small bowls filled with various concoctions for your use: pink clay facial mask for purifying and detoxifying; cranberry antioxidant body buff for exfoliating; pumpkin foaming cleanser, a natural exfoliating enzyme; body wash with pink grapefruit, ylang ylang and aloe vera for moisturizing; red mud pack from Korea for detoxifying; and a sea kelp body wash with aloe vera and seaweed algae to soften the skin.

After the orientation in the candle-illuminated room, you enter the mosaic-tiled steam chamber that features environmental music (rain, chirping birds and crashing waves), color-therapy lighting, rain forest showers and pulse-point water massage jets. For 30 minutes, slather yourself with the botanicals and breathe in the steam laced with an aromatherapy of your choice (invigorating rosemary was mine).

Six of the spa's seven treatment rooms are entered from an oval-shaped chamber with a painted domed ceiling that recalls a Parisian drawing room. Throughout the spa are antique crystal chandeliers, European antiques, heated limestone floors and silk comforters on the treatment beds. Another room is designed for couples' massages with two tables and a soaking tub for two. Expect scattered rose petals, soothing music and glowing candles.

The spa also features a heated outdoor terrace with a fireplace, where guests can enjoy a cup of tea or glass of wine while relaxing on chaise lounges with heated water blankets. The intimate nail salon faces the terrace.

Treatments range from signature Carolina Cocoons, featuring freshly harvested botanicals from the spa garden, to the Ingrid Millet sea mud caviar body masque. Plus, there's a full menu of massages from the traditional Swedish to something called the Metamorphosis Massage that combines 10 massage techniques from around the world.

But who can turn down something called Journey to Bliss? Not many, it seems. "It's our most popular treatment," says spa director Girard.

Ostensibly a facial, it's truly a head-to-toe service that begins with a foot treatment and massage with hot stones and includes plenty of attention to the face and décolleté that must involve at least a dozen product applications. (Who knows for sure? I zoned out for much of the 90-minute session.)

Pampered? Totally.