The land where the Tillamook Hotel stands was bought from W.H. Cooper in June 1891, and a church was built there the next year. In March 1912, Myrtle Ethel Holden, the youngest daughter of Warren Vaughn, bought the property from Tillamook Lodge No. 94 IOOF to build the hotel. The Christian Church on the site was moved, and construction of the first section of the three-story hotel began that September, along with a new bank in the block. The 1912 date still appears at the top of the building facing 3rd St. The hotel rose during a time of great expectations for Tillamook, after the Pacific Railway and Navigation Company opened rail service from Hillsboro to Tillamook in 1911 and improved access for people and products. At the same time, cement sidewalks, a sewer system, and new roads linking Tillamook with communities to the north and south were helping make the town a center of commerce, while Bayocean Park was being developed and promoted as the "Atlantic City of the Pacific." The hotel was strategically placed to serve new visitors and residents. A 1935 postcard promoted the 132-room building as the only hotel of its size on the cool Oregon Coast Highway south of Astoria, with a Grill and Coffee Shop offering the best food at low prices and rooms advertised at $10.00. In 1941, new owners bought the building and extended it to 2nd Street. During construction of the Navy blimp hangars, workers stayed there. The building wraps around three streets and includes an interior courtyard, and over the years its street-front spaces housed retail businesses including a jewelry store, bakery, book store, and bank. The upstairs rooms are now apartments, and in 2012 owners Carol and George Langlois painted the building in historical colors for its 100th anniversary.