9 beds 7.0 baths 4,400 SqFt 0.8 Acres


Hotels for Sale and Resorts, Restaurants and Bars for sale near Diamond, Oregon

49130 Happy Valley Rd, Diamond, Oregon 97722
Mardy Stewart

See this property

Mardy Stewart
(541) 573-7206


Historic Hotel/Bed-&-Breakfast For Sale in Harney County, OR

Well established Country Inn and much more!  The business is run for six months out of the year but could easily be ran year around.  The last couple of years the owners have cut back on time open due to other obligations.  The hotel has a large repeat clientele year after year.  Small store/gift shop on premises and DEQ approved gasoline and diesel fuel.  The fuel has not been used for the public but could be reapplied for from the state. 

The Frazier’s suite with kitchenette was named after the owners grandparents that managed the hotel 100 years ago.  Pear, apple & plum trees.  The Hotel Diamond is in the center of some of the best recreational opportunities in Harney County.  Starting with the Steens Mountains which is a massive fault block that has an elevation of almost 10,000 feet.  The mountain is cut by text book examples of glacial valleys which have views that are among the most magnificent to be found. 

Also there is the Malheur National Wildlife Refuge which is part of the Pacific Flyway.  This offers an exciting opportunity for bird watchers from all over the world to view an outstanding variety of waterfowl during their spring and fall migration through Harney County.  There are two wells one feeds into the other.  The Frazier’s & the hotel all have new propane lines.  Shows pride of ownership. 


ADDRESS: 49130 Happy Valley Rd, Diamond Oregon 

TAXES: $4,525.79

FINANCING:  Cash or possible terms to qualified buyer

YEAR BUILT:  1898, restored

SQ.FT.:  4,400 hotel plus 450 log suite (Frazier’s)

LOT SIZE:  .81 acre lot

HEAT SOURCE: Baseboard electric & laser stove

BEDROOMS:  9 rooms for guests plus master suite

BATHROOMS:  1 full, 1 – ½ and 5 – ¾

DINING: Large country style dining

APPLIANCES:  Gas commercial range, commercial dishwasher, walk-in cooler

GARAGE:  4 car heated, auto openers


The Historic Hotel Diamond 

Marion Horton constructed the 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. & Mrs. Horton and the two children operated the hotel for a time, then sold the property to Sid Comegys.  Mr. Comegys, being an enterprising man who recognized business opportunity, decided to add a saloon to the hotel in 1913.  This addition provided additional interest to the hotel for many and business was good as the clientele enjoyed the general saloon ambiance and the opportunity to drink and gamble.

The hotel was again 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 elsewhere.  To the consternation of some local patrons, Mrs. Haines tore down the saloon, thus discontinuing its operation.

In 1919 the property again changed hands when Mrs. Haines sold out to Steve Seweard, his wife Grace and his two sons managed the establishment profitably and the inn became widely known for its good services and accommodation.  Meals were prepared and served family style.  One teacher is known to have lived at the hotel for the winter, but the more usual customer was the sheep herder, camp tender, bachelor, cowhand, occasional travelers and similar people.  

As time went by, the Seweards decided to end their marriage.  Grace subsequently married Claude Smyth.  Grace and Claude leased the hotel to Rye and Nora Smyth in 1935, who continued its operation for five more years.  For unknown reasons the hotel was closed in about 1940 and remained empty until 1947 when Nora Smyth’s mother, Ella Smyth, bought the property.  Mrs. Smyth occupied the old hotel using it as her residence until she sold it to Russell Arnold and his wife.  Russell and Leona Arnold moved into the Hotel Diamond building in the early 1950’s.  They constructed another structure where the saloon stood. 

Don & Dorothy Brookshire purchased the building in 1973.  They ran the store and post office.  Dorothy Brookshire also did upholstery work.  Jerry & Judy Santillie bought the property from the Brookshires in 1986.  They had been operating the Frenchglen Hotel, located 30 miles south of Diamond on Highway 205 since 1985. 

Jerry & Judy completely restored the Hotel Diamond and the surrounding grounds, doing most of the work themselves.  This included gutting the entire interior of the building and starting over and by building an entirely new kitchen.  The restoration was completed in the spring of 1990.  Jerry & Judy left Frenchglen and the newly restored Hotel Diamond opened in March 1, 1990.  The handsome building and beautiful grounds are the work of their own hands.

In 2001 McCoy Creek Inn bought the Bed & Breakfast.  Making many improvements including Fraizer’s, a small pub named after the owners great grandparents who managed the hotel over 100 years ago.  It once served as the community ice-house.

This family run business is only open six months out of the year, leaving a lot of room for someone to extend.

The owners would be willing to stay on and help new owners get established or even lease the property.  There are many options available for someone following a dream or passion!   


  • Eastern Oregon Hotel

  • Eastern OR Bed & Breakfast





  • Bed & Breakfast / Lodges
  • Hotels / Motels
  • Restaurant & Bar
  • Investment & Income
  • Street Address: 49130 Happy Valley Rd
  • City: Diamond
  • State: Oregon
  • Postal Code: 97722
  • County: Harney
  • County: United States
  • MLS#: 36102-12610
  • Year Built: 1898
  • Courtesy of : United Country Jett Blackburn Real Estate Inc.