The story of the Hotel Bethlehem begins long before anyone built the current structure. The land it occupies traces back to 1741 when Moravian settlers established what became the city of Bethlehem. The earliest building on the site was known as the First House, a communal structure used by the Moravian community as they built their new settlement. This location became the heart of early Bethlehem and helped shape the identity of the town.

By the late 1700s, the site evolved into a more formal lodging establishment known as the Golden Eagle Hotel. This early hotel served travelers, merchants, and visitors passing through the growing Moravian settlement. Over time, it became a central gathering place for the community and was eventually renamed The Eagle. The building was remodeled several times throughout the 1800s as Bethlehem continued to expand.

During the 19th century, the Eagle Hotel played a role in both civilian and military life. At one point, it was used as a convalescent home for soldiers returning from war, reflecting the broader national struggles of the time. The structure stood as a symbol of hospitality and resilience but eventually became outdated as Bethlehem entered the industrial age.

In the early 1920s, industrialist Charles M. Schwab and investors connected to Bethlehem Steel financed the construction of a new, modern hotel on the site. The original Eagle Hotel was demolished, and the new Hotel Bethlehem opened in 1922. Designed in a grand architectural style, it quickly became a centerpiece of the city and a destination for notable guests and events.

Throughout the 20th century, the hotel witnessed both success and hardship. A devastating fire in 1989 caused significant damage and loss of life, marking one of the darkest chapters in its history. After the decline of Bethlehem Steel, local investors restored the hotel in the late 1990s, giving it a more certain future. Today, it stands as a fully revitalized historic landmark, blending colonial roots with early 20th-century elegance.

The Hotel Bethlehem has developed a strong reputation as one of the most haunted hotels in Pennsylvania, with reports spanning decades. Staff and guests alike describe the spirits here as friendly rather than threatening, often referring to them as the hotel's welcoming residents. Several apparitions have been identified, each tied to different eras of the building's long history.

One of the most famous spirits associated with the hotel is May Yohe, a singer and actress who spent part of her childhood at the earlier Eagle Hotel. Guests and staff have reported hearing faint singing late at night, as well as piano music playing when no one is present. Some claim to have seen a woman in elegant attire walking through the halls, believed to be her spirit revisiting the place where her life began.

Room 932 is widely considered the most active location in the hotel. Guests have reported waking to see a man or woman standing at the foot of the bed, only for the figure to vanish when lights are turned on. Others have described strange reflections in mirrors, flickering lights, and objects moving on their own. In some cases, guests have even reported briefly seeing an entirely different version of the room before it returns to normal.

Additional reports come from the dining and kitchen areas, where a woman in period clothing has been seen walking among staff and guests. She is often described as appearing without shoes, matching long-standing stories about a former employee tied to the earlier hotel. Witnesses have left the area after sudden encounters with this figure, convinced they had seen someone who did not belong.

Other paranormal claims throughout the building include disembodied voices, footsteps in empty hallways, and unexplained shadows. Staff have reported hearing their names called when no one is present, while investigators have recorded unexplained audio phenomena during overnight stays. Whether tied to the Moravian past, the Eagle Hotel era, or the modern structure, the stories continue to grow with each passing year.