When the old Sauk Centre House, the town's first hotel, burned to the ground on June 26, 1900, a feeling of relief came over the townspeople. The delighted citizenry spoke among themselves, "Now at last, perhaps the town can have a first class hotel."

Then, in 1901, Ralph L. Palmer and Christena J. Palmer built The Palmer House Hotel. And, it was a first class hotel! They lived there with their children Hazel Palmer and Carlisle R. Palmer. Christena's mother and brother, George Brandner, also worked at the hotel.

Modern for its day, The Palmer House was the first building in Sauk Centre with electricity. Salesmen traveling by rail regularly used the hotel for business meetings and relaxation. The hotel soon became the cornerstone of Sauk Centre's downtown area and served as a gathering place for the now-content locals. Nobel Prize winner Sinclair Lewis referred to the hotel as the Minniemashie House in his 1920 novel, Main Street.

The hotel endured an ambitious makeover in 1993, exposing its natural beauty from top to bottom with respect to Richard Palmer's idea. However, some of the comforts to which society has become accustomed have been added. The hotel originally housed 38 small rooms with guests sharing a common "necessary room" down the hall. There are now 19 rooms (each with its own bathroom facility), some complete with Jacuzzis to pamper you a bit. When you stay at The Palmer House, choose a room tucked away in the recesses of the hotel or a room directly above the Original Main Street where you can look down from your vantage point and observe the hustle and bustle of small town life. But resist the urge to keep to your room, and explore. We have many delightful shops downtown to peruse.

The Palmer House's spacious lobby is perfect for whiling away the hours reading and visiting. You'll find The Pub, just off the lobby, to be well-stocked with your favorite cocktails and a cozy sometimes spirited place to spend an hour to two. Trying to resist the inviting aromas coming from the restaurant will be your only problem. Our kitchen is open daily from 7:00 AM to 9:00 PM, and we have a baker who will tempt you back for more of her homemade goodies.

Come to The Palmer House for business, pleasure, or for the room 11 or 17. The friendly staff will be waiting to extend a warm greeting upon your arrival and cater to your every need throughout your stay. Whether it be a special event or an intimate evening for two, call us to discuss the many options we can put together for you. We do free consultations for planning your groom's dinner, wedding reception, showers, birthday parties.... whatever it is you may want to celebrate. We also participate with GreyStone Golf Course in a wonderful Stay and Play Package. Call us for details. We look forward to meeting you!

Over time, the Palmer House became known as one of Minnesota’s most talked about haunted hotels. Stories often begin with guests who expected a quiet overnight stay but reported hearing footsteps in empty hallways late at night. Doors were said to open or close on their own, and some visitors claimed to hear voices when no one else was nearby. These reports helped build the hotel’s reputation far beyond Sauk Centre.

One of the most repeated legends centers on a spirit named Lucy. According to local lore, Lucy was connected to the hotel in its early years and remains one of the most frequently mentioned presences. Guests have described the feeling of someone standing beside the bed, sudden cold spots, and the sensation of being watched in certain rooms. Some claim to have heard a woman’s voice or seen a shadowy female figure moving through corridors.

Another popular tale involves the ballroom and upper floors. Investigators and overnight guests have reported sounds resembling music, laughter, or distant conversations when those spaces were empty. Some say furniture shifted slightly or lights behaved strangely without explanation. Others describe the sense that unseen people were moving around just out of sight.

Employees and returning visitors have also added to the folklore. Staff members have spoken of objects moved from where they were left, unexplained knocks on doors, and elevators seeming to respond when no one had called them. Housekeeping workers have occasionally described rooms that felt normal one moment and intensely uneasy the next. These recurring stories have strengthened the belief that multiple spirits may be present rather than only one.

Whether viewed as paranormal truth or the natural atmosphere of an aging hotel, the Palmer House has embraced its mysterious identity. Ghost tours, investigations, and curious travelers continue to visit hoping for an experience of their own. The combination of historic architecture, creaking floors, dim corridors, and decades of legend gives the hotel a powerful sense of place that keeps the stories alive.