Built in 1845 by Jared Coffin, the island's first three-story mansion, survived the Great Fire of 1846. The brick walls and slate roof resisted the fire and helped stop the fire from spreading further. In 1847 the Nantucket Steamship Company bought the house for use as a hotel, naming it the "Ocean House". Eben W. Allen purchased the property in 1857, building a three-story addition containing sixteen bedrooms. The addition was later connected to an 18th-century wooden framed building known as the Swain House.

Allen sold the property in 1872. The "Ocean House" passed through many owners until 1961 when the Nantucket Historic Trust purchased and completely restored the property. The property reopened in 1963 as the Jared Coffin House, a year-round hotel. Since 1963 several additions have increased the size and capacity of the Inn. The additions have included other historic properties such as, the Daniel Webster House, the Henry Coffin House, and the Harrison Gray House. Philip and Margaret Read purchased the property in 1976, they had leased and managed the Inn since 1966.