Cabin #2 was constructed in 1906 as the Palace Hotel and Bath House, and was originally located at 194 4th Avenue near Cushman Street. On the first floor, tub baths were available for fifty cents. Upstairs were the sleeping quarters. Hotels in the early days were often dormitory-style, with the entire upper story devoted to bunks, separated by cloth curtains for privacy. The building is an excellent example of the logs structures built for the first businesses in Fairbanks. In 1957, the bathhouse was renamed the Chena Hotel, and was moved to its location at Pioneer Park in 1967.
The Bag Ladies of Fairbanks have since taken over with offerings of hand-made, fabric bags, Alaskan gift items, food, beverages and coffee.
