Caleb Pancoast built his family home here around 1805, and after the Frederick Turnpike came through in 1808, he laid out a town with quarter-acre lots. The turnpike, which connected Baltimore and Frederick, opened a new era of westward expansion, and recognizing travelers' need for food and rest, Pancoast built a two-story brick hotel here around 1814. The Lisbon Hotel was regarded as an upscale establishment, and by 1825 its new owner, Beale Gaither, had doubled its size with a two-story wooden addition. The building continued as a hotel until around 1867, when it became a family home, and it was later used by blacksmiths and wheelwrights as both a dwelling and a mechanical shop serving travelers along the road. In the first half of the 20th century, the Lisbon Hotel ended its history as a general store.