The Phoenix Hotel in Lanesboro was built at the cost of $50,000 in 1870. The hotel was four stories with saloon, baggage room, and railroad ticket office. The stone used for its construction was quarried from local bluffs. Its parlors and suites were expensively furnished. It was widely advertised as both a high class hotel for the traveling public, as well as a sanitarium. The hotel housed the Bank of Lanesboro, the businesses of Hanson & Davis, and Knudson & Hobart. Its landlords were Messrs. Chase and White. The building was destroyed by fire on May 5, 1885.