Built in 1886, the Island House has a long and colorful history. The present structure at the intersection of Perry and Madison Streets was commissioned by Conrad Gernhard, Sheriff of Ottawa County, to replace the Old Island House Hotel which had burnt down in 1882. The total cost of construction and furnishings was $25,000.00 and was financed by the Sheriff's collection of interest and penalties on delinquent taxes. Although there was only one bathroom for the 50-room inn, a local paper reported that "the House was equipped with every modern convenience pertaining to the traveling public." Gernhard also established a popular restaurant and saloon on the site. The Island House became a popular hunting and fishing lodge and Presidents Hayes and Garfield, both avid sportsmen, stayed at the Island House Inn.

After the death of Sheriff Gernhard, the Island House was purchased by the Stensons as a wedding present for their children.

In the 1960's, the Island House was host to many Hollywood personalities, including Humphrey Bogart and Lauren Bacall, who stayed in Port Clinton while checking on custom-designed boats at Mathews Boat Lines. Babe Ruth and Joe DiMaggio also stayed in the Island House when traveling (check out the pictures in the Victory Bar restaurant!).

The Island House Inn was purchased by Walt McKenna and Pam and Dave Waleri in 1997. They remodeled the hotel to create a full service, upscale inn, including an Italian restaurant, Anthony's At The Inn, and a sports bar.

Today, the Island House Inn is a condo-tel, with 38 rooms individually owned, but operated as
a hotel.