The Hotel Margaret was built in 1892 by the Big Blackfoot Mill and was possibly named to honor Margaret Robinson, an early school teacher in Bonner. The hotel offered a place to stay for visiting management, official guests, and as well as five to six mill workers.
In 1905 the hotel had seven employees in addition to the proprietor, including a cook, two waiters, a chambermaid, a porter, a yardman, and a barber.
Many community events were held at the hotel. Bonner resident Genevieve McClellan, recalled that on Sundays dinner was served and often some of the men from the lumber camp at Potomac attended.
For a while the community library also was housed in the hotel, and after checking out books patrons could sit in the handsome lobby and read. It was an elaborate Victorian structure, with much hand-carved detail. In 1957 the building, no longer needed by the Company, was torn down, much to the regret of the community.