The property upon which the Tillamook Hotel now stands was purchased from W.H Cooper in June 1891. A church building was erected on the land the following year. Myrtle Ethel Holden (youngest daughter of Warren Vaughn) purchased the land to build the hotel from Tillamook Lodge No. 94 IOOF in March of 1912. The Christian Church on the property was moved and the first section of the three-story Tillamook Hotel began construction that September, as did the new bank in the block. The 1912 date still exists on top of the building facing 3rd St.
This was a period of great expectations for Tillamook. The Pacific Railway and Navigation Company opens the railroad service from Hillsboro to Tillamook in 1911, making a huge difference in the accessibility of people and products to and from Tillamook. Cement sidewalks and a sewer system were being constructed in the downtown area during this time. New roads connecting Tillamook to communities north and south also helped Tillamook be the center of commerce. The summer resort of Bayocean Park was being developed and promoted as the "Atlantic City of the Pacific." The Tillamook Hotel was strategically place to serve the new group of visitors and residents.
A 1935 postcard advertised the 132 room structure as the "Only hotel of its size on the cool Oregon Coast Highway, south of Astoria."
The hotel had a Grill and Coffee Shop with the "best of food at low prices." Rooms were advertised as $10.00.
In 1941 new owners bought the building and extended it to 2nd street. During the construction of the Navy blimp hangars, workers were housed at the hotel. The hotel building, which winds around three streets, has an interior courtyard. Various retail shops, such as a jewelry, bakery, book store and bank have occupied the street-front stores through the years. The upstairs rooms are now apartments. The building was painted in historical colors by owners Carol and George Langlois in 2012, to commemorate the building's 100th anniversary.
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