Michigan Haunted House

1 of Michigan’s Most Famous Haunted Houses That You Never Heard Of

Nestled in the heart of Michigan’s Upper Thumb, Bay Port is a town steeped in history and mystery. While it’s home to the vanished Ora Labora German Colony that existed from 1861-1867, the enigmatic Old Bay Port Cemetery, and the presumed haunted Bay Port Hotel, one site stands out as a magnet for paranormal enthusiasts: the Sweet Dreams Inn. The now-closed B&B is considered one of the most active haunted houses in Michigan.

The Haunting Legacy of Sweet Dreams Inn in Bay Port

Built in 1890 by the prominent William H. Wallace, this Victorian mansion has become one of Michigan’s most paranormal active homes. From the footsteps of William Wallace to the spectral presence of his family members, the inn offers more than just a night’s stay; it promises an encounter with the unknown. In this article, we’ll delve into the tragic history, the haunting figures, and the eerie occurrences that make the Sweet Dreams Inn a must-visit for anyone intrigued by the supernatural.

Tragic History of William Wallace’s Life in Bay Port

Haunted House - William Wallace

The Inn was built in 1890 at the end of the lumber era in the Upper Thumb. Contracted by William H. Wallace, the Victorian-style home was designed with the tastes and style common at that time by those with means. Wallace was a huge landowner and had a business interest in many areas.

Wallace was active in politics and was a delegate in the Republican National Convention in 1908, 1916, and 1924. He was president of Michigan Sugar Company and Bay Port State Bank.  He owned the Wallace Stone Quarry just south of town and still in operation today.  

Bay Port Michigan 1940
Bay Port Michigan 1940

In 1895, William and W.J. Orr established the Bay Port Fish Company, which is still in operation in the community today.

His first wife, Elizabeth, died in 1893, and local lore tells that she passed away in the home.  William was tragically killed after an automobile accident in 1933. They’re also a bit of a mystery as to the final resting place of William Wallace. Despite the prominence of this individual in Bay Port, Wallace was not buried in Bay Port. He is buried in Bad Axe, miles away.

The original family owned the large mansion for over 100 years. The family lived on the first two floors. They entertained in a large ballroom on the third floor. Local historians noted that the Wallaces would host parties on Saturday night that would last well into the morning hours. Guests say that most of the paranormal activity occurs on the third floor of the haunted house.

“Me and my best friend live in Bay Port We have seen ghosts and heard screams countless times walking on the street in front of the Sweet Dreams Inn. Also, have heard stories of ghosts and have seen the little girl looking out of the left window on the third floor. So I believe it is haunted!!!”

The Locally Famous Sweet Dreams Inn

Sweet Dreams Inn
The former Sweet Dreams Inn

The Inn is considered one of the most paranormally active homes in Michigan. Thus, it’s no coincidence that visitors say Wallace and his first wife still roam the inn with his heavy footsteps and whispering in the guests’ ears. While they are considered friendly spirits, some visitors leave the inn in the middle of the night as Wallace’s ghost wanders the mansion, telling the guests to leave.

Sweetdreams Inn

The Sweet Dreams Inn was a specialized bed-and-breakfast where guests hoped to experience the proximity of these friendly ghosts. Guests have reported opening and closing doors, and beds and chairs are moved.

Some report feeling touched and hearing voices and footfalls where nobody has been. One event caught on a cell phone video was an “orb” flying through one of the guest bedrooms.

Additional Haunting Figures: Ora and Margaret Wallace

While William Wallace’s presence is strongly felt in the inn, he’s not the only family member who seems to linger. His youngest daughter, Ora, is known to haunt the third floor. Guests have reported furniture moving and even feeling a touch, believed to be Ora trying to interact with them.

Margaret, William’s second wife, also has a spectral presence. She’s often felt on the second floor, rattling doorknobs as if checking on the children. Her maternal instincts appear to transcend the mortal realm, adding another layer to the inn’s haunted reputation.

A Deeper Dive into Paranormal Activities

Guests and locals alike have reported a wide range of paranormal activities. Spirits have been heard talking, crying, giggling, and even answering questions. Some guests have captured these eerie occurrences on their cell phones, adding to the inn’s haunted allure. Whether it’s lights flickering on and off or objects mysteriously moving, the inn never fails to give its visitors a supernatural experience.

Video Tour of The Closed Sweet Dreams Inn

Bay Area Supernatural Encounters visits The Sweet Dreams Inn

“Been there several times and have experienced activity first hand: footsteps, voices. Just because one person doesn’t have an experience doesn’t mean it never happens.”

At times, guests are unnerved by the experience and leave in the middle of the night. The owner described the events in the inn as those of a haunted house that appealed to those seeking a supernatural experience.

 “Most guests don’t know (about the unexplained occurrences) but they usually find out by the end of the night. Some guests leave at 3 or 4 a.m.”

But You Can’t Stay There Anymore…But!

Sweet Dreams Inn Sign
Sweet Dreams Inn is Welcome…

The inn has been featured in two Haunted Michigan travel books and appeared in a paranormal documentary and movie. It’s also found on the famous Pure Michigan website. However, the Inn is no longer registering guests, and its official website has been down. However, if you’re interested in staying at the B&B, the owner did post to message her. However, the Sweet Dreams Inn Facebook Page no longer exists.

The Inn Today: A Ghostly Relic?

As of now, the Sweet Dreams Inn is no longer operational, according to sources. However, its haunted legacy continues to intrigue both locals and visitors. If you’re interested in experiencing the inn’s paranormal activities, watch for special tours or events that may allow you to explore this ghostly relic.

Contact Information for the Brave

For those daring enough to experience the inn’s hauntings firsthand, you can reach out for tours or special events at 586-863-2920 or via email at hauntedsweetdreamsinn@gmail.com. While the inn may not be operational as a bed-and-breakfast, its haunted history continues to draw the curious and the brave.

Haunted Michigan
Bruce Mansion

The Upper Thumb region has enough reports and stories to make it one of the most active paranormal areas in the state. Haunted Bay Port will give you an indication of just how active it is. The story starts in the last 1800s with a story of a local note that gave rise to the tale of the haunted Bay Port Hotel. But Bay Port isn’t the only town in the Upper Thumb with things that bump at night.

See our report on other Spooky Spots in Michigan’s Thumb for sites you can visit and experience. Many are not haunted, but they sure can be spooky. Finally, here is a story for the ages. At one time, the tip of the Thumb was hit by a crime spree. Check out the Legend of the Caseville Grave Robbers. You will be surprised why they were digging up the graveyard.

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Michael Hardy

Mike Hardy is the owner of Thumbwind Publications LLC. It started in 2009 as a fun-loving site covering Michigan's Upper Thumb. Since then, he has authored a vast range of content and established a loyal base of 60,000 visitors per month.

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