Carter Hall was built in 1928 as the luxurious Lookout Mountain Hotel. Guests came from all over the country to vacation at the "Castle in the Clouds," as it was nicknamed. However, with the onset of the Great Depression, the hotel did not operate successfully. It opened and closed several times, finally closing its doors in 1960.
Covenant bought the building in 1964, when the College moved from St. Louis to Lookout Mountain, and named it in honor of Paul Carter, the Chattanooga businessman who constructed and owned the hotel. For several years, Carter Hall was the only significant building on Covenant's campus. It contained the chapel, library, classrooms, faculty and administrative offices, dining hall, and student residence rooms.
Today, the first floor of Carter Hall contains administrative and staff offices, the Great Hall, the Tuck Shoppe (the College's bookstore), and the Blink (the campus snack bar). The second-fifth floors house student resident rooms. The mailroom, chaplain's office, a lounge, and facilities management offices occupy the lower level.