Dave and Pat Hanley opened this hotel consisting of 43 remodeled cabooses in December 1984. They got the idea for the business after buying a caboose to be used as a guest house at their family farm in 1982.
In 1983, they purchased the cabooses from Chicago & Northwestern and Milwaukee Road rail yards and acquired a one mile stretch of abandoned railway near the Lake Geneva resort area.
They spent a year and a half remodeling the cabooses inside and out. Some of the cars were joined together to form suites.
In 2000, the couple was ready to retire and sold the cabooses individually to new owners. Many of the new owners use their caboose as a personal summer home, and some offer their caboose for rent to tourists.