The Interlaken Inn & Restaurant is situated on Signal Hill, part of the Old Military Tract. Originally the hunting grounds of the Mohawk tribe, these lands were owned by New York State after the Revolutionary War. In 1849, the Interlaken property was deeded by State Patent to the noted abolitionist Gerrit Smith.
In 1852, Smith sold a large tract to Benjamin Brewster. Brewster cleared a large farm on Signal Hill and the Interlaken property was a part of the farm.
In 1887, Brewster deeded a large section of his property, including the Interlaken parcel, to John & George Stevens, owners of the Stevens House Hotel on adjoining land. The Stevens brothers used some of the newly acquired lands for a hotel golf course, and divided the rest of the property into cottage lots.
In 1911, the Interlaken property was purchased by Forrest B. Guild, a leading citizen of Lake Placid.