Photo Cover: Derek and Margaret Hutton stand in front of their newly renovated Stonegate guest house in historic Lexington, Va. Photo by kevin remington
Guest House offers Elegance, Southern Hospitality, Guided Fly Fishing and More in Lexington
Photos Courtesy of Stonegate
Psychologist Margaret Rutherford once said, “Your child’s life will be filled with fresh experiences. It’s good if yours is as well.” That’s the philosophy empty nesters Derek and Margaret Hutton chose to live by after raising their two sons out West.
“At the time I was the head fly-fishing guide, international trip agent and host with World Cast Anglers in Idaho and Wyoming, and Margaret was the director of Faith, Care and Action for St. John’s Episcopal Church in Jackson Hole,” said Hutton. “Our sons had started lives of their own, and we were looking for our next adventure in a warmer climate. We also wanted to be closer to family in the Southeast and further develop our skills in the hospitality industry.”
The Huttons created a Venn diagram and searched the world for a suitable location that met their requirements. They settled on the Bahamas, which offers convenient, short flights to the States, a subtropical climate and warm waters for Hutton’s professional fly-fishing pursuits. In addition to guiding clients in the West, he has organized and led fly-fishing trips in Argentina, the Bahamas, Belize, Chile, Costa Rica, Mauritius, Mongolia, Panama and the Seychelles.

“Margaret and I have lived and worked internationally,and traveled extensively in Africa, Asia, Europe and Central and South America,” he said. “We’ve walked the entire Camino de Santiago in Spain and a section of the Great Wall of China. We’ve ridden horses in Patagonia, sailed the Turkish coast, cruised Chilean fjords and climbed the Grand Teton in Wyoming. We’ve hosted guests at lodges, churches, rivers and flats around the world. Instead of hosting more international trips, our aim was to stay in one place and operate a fly-fishing lodge.”
Hutton is friends with Oliver White, another accomplished professional fly angler and guide who he fished with in Idaho. White is affiliated with Nervous Waters, owner of Kau Tapen, a fly-fishing lodge in Tierra del Fuego, Argentina, as well as a collection of other upscale fly-fishing and sporting lodges. Together, White and Nervous Waters built Abaco Lodge on the famed Marls of Great Abaco Island, a 200-square-mile marine wilderness.
White and Nervous Waters presented the Huttons with an opportunity to manage the operation. The three-year international commitment required staffing work and business development, and the couple decided to go for it. Soon afterwards, on Sept. 1, 2019, Hurricane Dorian devastated the Bahamian island and lodge.
Fortunately, another Nervous Waters destination—Bair’s Lodge on nearby South Andros, an island that escaped the worst of the hurricane’s wrath—needed new management. The Huttons faced similar challenges with Bair’s Lodge, an assignment that also included changing the culture and overseeing capital improvement projects.
“You could say Margaret and I earned our MBA degrees in luxury and boutique lodge management during our three years managing Bair’s Lodge,” Hutton said. “The lodge is ideally located within striking distance of remote south and west-side fisheries and offers wind reprieve across endless miles of flats in the adjacent creeks. It’s a perfect bonefish fishery.”
While other lodges temporarily closed in the aftermath of Dorian, Bair’s Lodge enjoyed three record years under the couple’s meticulous oversight. Even during the COVID-19 pandemic, the Huttons focused on upgrades and reopened after five months to pent-up demand.
“Margaret did a remarkable job with business development and working with the Bahamian government during the shutdown. Thanks to her efforts, the Bahamas Ministry of Tourism awarded the lodge with the new “Clean & Pristine” designation based on our adherence to the highest standards of sanitation and training with additional and enhanced cleaning protocols. We learned a lot and cherished our time there.”

After completing their three-year term, the Huttons decided to move back to Virginia, where they both completed their undergraduate work. They also wanted to be closer to their parents and children, but it was difficult to find a turnkey bed and breakfast.
“Derek and I met at summer camp in Alabama when we were 10 years old and dated throughout high school and college,” said Hutton. “He attended Washington and Lee University in Lexington, where he was a four-year letterman on the lacrosse team, and I went to Radford University, where I was a classical ballet dancer. We always appreciated the small-town charm of Lexington and the region’s beauty. We love Virginia.”
Having completed their “graduate studies” in hospitality management, the Huttons wanted to own their own B&B. Their vision was to offer guests an authentic Southern-hospitality experience—and incorporate their love of guided fly fishing into the mix.
“Our goal was to open a B&B that was a true representative of us,” she added. “Working for a church, I learned a different type of hospitality and the importance of building relationships. We already had the soft skills before running Bair’s Lodge, and our tenure there prepared us with the hard skills to manage our own lodge. Then we discovered Stonegate.”
Located on South Main Street in historic Lexington, Stonegate is a comfortable and graceful residence that has stood the test of time. The original home, which is now the kitchen, stood on 175 acres. James Campbell built the house in 1832. He died in the 1850s, and his family sold the farm to E.F. Payton and W.G. White, who then subdivided the property.
Reverend William M. McElwee purchased the one-acre lot along with the “dwelling house” for $6,080. He built the main house in 1859 and owned it throughout the American Civil War. After the war, General Robert E. Lee became president of nearby Washington College (now Washington and Lee University) and moved to Lexington. Lee frequently visited McElwee, his friend and fellow equestrian, and rode horses with him on the farm, often staying into the afternoon. Crowds assembled in front of the house so they could witness the general leaving the property. Lee valued his privacy and departed through a trapdoor in the dining room floor, which led to the basement and out the back of the house. The home became known as “Stonegate” because of its formal entrance for carriages and horses off Main Street.

“I went back and forth from the Bahamas to Virginia and believed Stonegate was a similar opportunity for us without the obstacles of remote island life,” she said. “We purchased the property, reviewed blueprints, navigated the city’s zoning commission and started our renovation plans. The community of Lexington came together and supported the undertaking. They really rallied around us, and we’re so grateful. Contractors lined up to help us and were eager to work on the historic home. Stonegate had a rich history and character but had fallen to neglect. Fortunately, our youngest son initiated the refurbishments and sent us iPhone photos so we could see the progress before we could move.”
The Huttons’ renovations converted Stonegate into an elegant five-bedroom B&B. The couple received their first clients on Sept. 22, 2022. Today they welcome outdoor enthusiasts, destination visitors, college students and their families to explore the treasures of Lexington, Rockbridge County, the Shenandoah Valley and the Blue Ridge Mountains.
“Margaret and I are proud of our renovations to the house and grounds,” Hutton said. “We hold ourselves 100% accountable to our guests, and they can expect personalized, world-class guest services from us. We don’t smother guests but will accommodate their needs for formal gatherings, weddings and romantic getaways. Margaret prepares made-to-order breakfasts—and I make biscuits from scratch every day.”
“Derek’s biscuits are unbelievably good,” said his wife. “And then there’s fly fishing.”
The Huttons also own and operate Virginia River Guides (VRG) and hold themselves to the same standards of excellence for guest experiences. Like the World Cast Anglers’ model, VRG customizes day trips for anglers of all abilities and provides everything you need—including lunch and beverages—except for hats, clothing and polarized sunglasses. Guided trips include fly fishing on the James, Jackson and Maury Rivers. Depending on conditions, clients can wade or fish from drift boats, rafts and a guide canoe.
If you’re looking for a getaway with bespoke Southern hospitality and outdoor experiences, look no further than Stonegate in historic Lexington. Save room for morning biscuits.
Learn more and book an experience of your own at stonegatevirginia.com and virginiariverguides.com.
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Joe Shields is the editor in chief of The Virginia Sportsman. He is a writer and communications executive based in Charlottesville, Va. His writing and photography have appeared in The Virginia Sportsman and other publications. He is also an award-winning, gallery-represented artist whose work is in private collections and galleries. Whether fly fishing or surfing, drawing or painting, he celebrates sporting life and culture in his narratives and art.