The Lake Zurich Hotel was built in the early part of the century, according to Ron Frank, Ela Area Historical Society vice president. For more than half of the 20th century, Lake Zurich was a bustling tourist town with hotels on Main Street and inns and cottages on the lake.
The hotel was previously known as the Peaham Hotel and was located on Main Street. In 1972, the hotel burned down and two people were killed, Gordon Stewart and Lars Westin, according to Ela Township History.
After the hotel burned down, a bank was built on the lot. That building is now Lake Zurich Village Hall.