 The McGrath Hotel is located on the site of the cabin of William Henry Taylor, who platted North Bend in 1889.In October 1921, Jack McGrath and his wife Caroline purchased the site of their future venture, McGrath's Café; construction was completed as a one-story restaurant in 1922.In early 1926 the building was expanded two window bays westward, creating the hotel lobby (now the restaurant bar), and a second story was added to the entire structure to accommodate the hotel rooms of the new McGrath Hotel.