Experience a Haunted House in Bay Port Michigan

If there is one area in Michigan’s Upper Thumb where the paranormal might reside it would have to be Bay Port. The area was the site of the vanished Ora Labora German Colony that existed from 1861-1867, the spooky and unattended Old Bay Port Cemetery the famous but now vanished and presumed haunted. Bay Port Hotel and the address of the

Haunted House - William Wallace


Tragic History of Wallace’s Life in Bay Port

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 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 which is just south of town and still in operation 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. Wallace was buried in nearby Bad Axe. Thus it’s no coincidence that visitors say Wallace and his first wife still roam the inn with his heavy footsteps, as well as whispering in the ears of the guests.

“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 the 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

The Sweet Dreams Inn

The Sweet Dreams Inn was a specialized bed-and-breakfast where guests hope to experience the proximity of these friendly ghosts. Guests have reported that doors open and close, beds and chairs are moved. Some report that they feel being touched and hear voices and footfalls where nobody has been. One event that was caught on a cell phone video was that of an “orb” flying through one of the guest bedrooms. 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.


“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.”

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.


 “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…We Think

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 in the famous Pure Michigan website. However, it appears that the Inn is no longer registering guests and their official web site has been taken down. However, the owner did post that if you’re interested in staying at the B&B to message her. See the Sweet Dreams Inn Facebook Page.

More Hauntingly Related Stories

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

Quotes from - hauntedhovel.com, michigansthumb.com
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