Marion Horton constructed Hotel Diamond just before the end of the century to serve the traveling public, and at the same time, erected his own home adjacent to the inn. Mr. and Mrs. Horton and their two children operated the hotel for a time, then sold the property to Sid Comegys. Mr. Comegys, being an enterprising man who recognized a business opportunity, decided to add a saloon to the hotel in 1913. This addition provided additional interest in the hotel for men, and business was good as the clientele enjoyed the general saloon ambiance and the opportunity to drink and gamble.
The hotel was transferred to another owner when Anne Haines, whose husband had a store in the town of Narrows, traded land in that area for the property; she and her family moved to the Hotel Diamond in about 1916, and Sid Comegys relocated. To the consternation of some local patrons, Mrs. Haines tore down the saloon, thus discontinuing its operation.
In 1919 the property changed hands when Mrs. Haines sold out to Steve Seward. Seward, his wife Grace, and his two sons managed the establishment profitably, and the inn became widely known for its good services and accommodations. Meals were prepared and served family-style. One teacher is known to have lived at the hotel for the winter, but the usual customer was the sheepherder, camp tender, bachelor, cowhand, occasional traveler, or similar people.