In 1915, the White Pass & Yukon Route brought 125 tourists to Atlin, putting them up in various hotels around town. They determined that a new, much more luxurious hotel was needed for their clients, and on June 10, 1916, construction began.

A large piece of property right on the lakeshore, with dramatic views, was chosen. Low water on the lakes hampered the delivery of building materials, which were brought to Skagway, Alaska, by ship, then by WP&YR train to Carcross, boat to the short rail portage at Taku, then by boat again to the construction site. While the hotel was under construction, the town was wiped out by fire again, but the crew managed to save the building from damage. On July 15, 1916, the hotel opened, under the management of the WP&YRs steamboat division, the British Yukon Navigation Company (BYN).

1916, had 422 guests during the season.
fall 1916, 7 more rooms added, the toilet system improved, and a steam heating plant installed.
1917, steamer Tarahne built by the BYN to service the hotel.
1921, a new wing was added, with 35 rooms.
1921, approximately 700 passengers taken to Atlin by BYN.
1922, a 14x24 lean-to was added, to serve as an employee dining room.
1926, an addition to the south wing built, with 18 guest and 5 staff rooms; 5 baths and toilets also installed. To provide for additional power needs, the boiler from the steamer Norcom at Hootalinqua was installed.
1929, hot and cold running water installed on ground floor and first two floors.
1930, the roof was leaking, so "patent shingles" were installed; "these shingles are fireproof and are coloured. In addition to giving us a good tight roof it considerably improves the appearance of the building.".
1932, "arrangements were made to secure a supply of spring water for drinking purposes by piping water from a spring belonging to Mr.Turnquist. This does away with the using of lake water in the Hotel."
in 1936, the hotel was 1936, the furnishing sold off and the buildings boarded up.
over the winter of 1940-1941, the empty hotel was used by a crew of mechanics to assemble a large crane and shovel.
the south wing was moved north and opened as a Red Cross hospital during the war, the rest of the buildings were dismantled. The current Atlin Inn has no relationship to the original - it seems to date to the late 1950s.