Rayland pouring down sunshine in Downtown TD; Hotelier goes boutique, banks on tourism, rec.

Regional Director Stephen Davis, 37, recently gave CCCNews a tour of the renovated rooms and a look into the next phase of renovations at the former The Dalles Inn, now called the Rayland Hotel. He is part of VIP Hospitality Group, a large Northwest owner and operator of boutique hotels. The Group is also undertaking the Waucoma Hotel Building restoration in Hood River.

By Tom Peterson

The Dalles, Ore., April 23, 2025 — The multi-million dollar renovation of The Dalles Inn across from the US Post Office continues as VIP Hospitality Group of Portland is full steam ahead on creating a boutique hotel in downtown the Dalles.

The company with 8 different hotels along the Oregon and Washington coast is in it for the long haul.

“We’re not looking to flip it,” said Stephen Davis, Regional Director with VIP in a recent tour of the hotel. “This will be a lifestyle boutique hotel, and once we buy a property we keep it and run it.”

The Rayland could very well be the next piece of the puzzle as The Dalles works to create an inviting and interesting downtown atmosphere that draws tourists that are willing to dump money into the local economy. The downtown appears to be on the cusp of a major transition as new housing, a public plaza on Federal Street and plans to place the Jantzen Beach Historic Carousel next to the National Neon Sign Museum are coming together. The opening of the Farm Stand Grocery and Deli also recently brought back a long-lost service in the downtown core.

Historic Waucoma Hotel Building / photo courtesy The History Museum/Hood River County

VIP is the same company that is renovating the historic Waucoma Hotel building now called the Lightwell Hotel and Spa at the corner of Cascade Avenue and Second Street in downtown Hood River. It used to house River City Saloon.

Davis and his company recently renamed the hotel in The Dalles the Rayland - a tip of the hat to our sunny weather as well as the recreational opportunities in our area.

“There is potential for a lot of new tourism,” he said. “There is a lot of recreation too. And for people traveling through this is a jumping off point.”

Recreational flowering

Davis said the company is also looking at the steady market of contractors and traveling business people who are now coming to The Dalles as projects such as the addition of Google data centers require skilled workers such as electricians, plumbers, HVAC techs, Architects and Engineers.

The Rayland Hotel - seen here in charcoal gray will have a new sign in months to come. VIP Hospitality will also keep The Dalles Inn brand with the smaller 28 room building that fronts Third Street. They call it “dual branding.”

The company is also splitting things up a bit.

The Dalles Inn featured 64 rooms in two buildings - 36 on the 2nd Street side and 28 on the satellite building facing 3rd Street across from Burgerville.

Stephen Davis, Christina Valencia and Andy Knight check for available rooms in the Rayland Hotel lobby.

Davis said they will have dual branding at the site - The Rayland will refer to the 2nd Street building and The Dalles Inn will keep its name at the 3rd Street building. All guests, however, will check in at the Rayland front desk.

Renovation Update

Above and below are architectural renderings of the Rayland Hotel, the former The Dalles Inn, 112 W. Second Street. The swimming pool is currently where you see the outdoor seating. It will be removedto make way for a coffee house, and a new bistro bistro & kitchen and new gym and meeting room will be on the second floor.

Davis said the 36-room renovation at the Rayland was near complete including new bathrooms, led lighting, including an ADA compliant room complete with roll in shower.

The company has been using local subcontractors whenever possible including Sergio’s Construction which did 90 percent of the drywall installation.

In addition, the halls have also been renovated, fire sprinkler system and new electrical installed. They even removed a 30-foot oil tank from under the asphalt in the alley which was used to heat the building in past days.

Renovated rooms.

And gone are the popcorn ceilings.

Renovated bathrooms

Prices right now start as low as $120 a night.

During the next 6 months, renovations will focus on the lobby, upstairs bistro, kitchen, gym and a meeting room.

And the pool is going away - It will be replaced by a coffee shop with 20 foot ceilings and a two-sided fireplace that also provides heat to a front deck that will front the Second Street sidewalk, allowing for inside and outside seating.

The old Tapadera pool will be buried in months to come to make way for a new coffee house. The area will be roofed and have 20 foot ceilings with a porch and a fireplace facing Second Street.

The Walldogs mural team are also coming to do a complete restoration on the Umatilla House mural that on the hotels east wall in September when the latest set of renovations will be close to complete.

“I feel like we're bringing a product to The Dalles that it has not had before,” Davis, 37, said. “It’s going to be a busy summer.”