On April 7, 1925 a group of local and outside business interests formed a company to raise $300,000 in stock to build a hotel on the vacant site of the former Emerson Hotel on the corner of Main and Lassen Streets. Construction began that summer for the three-story reinforced concrete structure. The new hotel opened with little fanfare on April 27, 1926.
In the meantime, during construction a contest was held for a name of the new hotel, the winner to receive $25. To be creative, the names Susanville and Lassen were barred. On November 25, 1925 a name was selected. Frank Coffin, who had secured a ten year lease to operate the hotel, asked the Susanville Hotel Company that it be named “Hotel Mount Lassen.” Coffin told the board that the name had better advertising appeal. The board was reluctant, but adopted the request.