The first Terrace Inn was located on the current site but was a two story boarding  house with a few rooms and kitchen. It was of the Victorian Cottage design and was replaced by the current hotel in 1910-1911.   Used for housing staff while the New Inn was being built, it was eventually torn down, along with 3 cottages to make space for "New" Terrace Inn Hotel. 

     According to rumor, two workers were killed when a beam fell on them during the building process.  The arts and crafts style replaced the earlier Victorian era, with straight beams, straightforward lines, and columns.   The furnishings were purchased from the Albert Pick company of Chicago, who also furnished hotels in Detroit and Chicago.


"What a beautiful place! We’ve lived in this area for years and have never been to the Terrace Inn. I can’t believe we’ve never been here before. We came for the Little Traverse Bay Parafest and I have to thank all the staff, waitstaff, cooks, Chef, and everyone who participated in making the event a success and making us feel so at home. Everyone was so friendly and always had huge smiles on their faces.Although we didn’t get the opportunity to stay over for the weekend, we will defiantly be back to come and stay. The historical feel of the place is amazing and made us feel like we stepped back in time. A Big Thank you to the Bumps in the night paranormal team and John and Jackie Cassidy. You guys ROCK!!! 

Ghosts have been seen, heard, and felt by several guests and employees.  Documented records written by those people who chose to share their experience can be signed out at the front desk on request. Many paranormal investigations have taken place here, and psychics, "sensitives" and others with extra sensory abilities have filled in the missing pieces of the spirits inhabiting the Inn.  No worries, as no demonic presence or other negative experiences have been observed.