[citation needed] The Red Star Lodge occupies a 6.2 acres (2.5 ha) site leased from the U.S. Forest Service near US Highway 14-16-20, about 6 miles (9.7 km) from the east entrance to Yellowstone National Park.

The lodge was built by Henry Dahlem, the first sheriff of Park County, Wyoming, beginning in 1924 and progressing by stages.

The lodge and other structures were built of D-shaped milled logs, produced on site at the Star Sawmill.

Henry's son Harry took over management of the ranch in 1949 at a time when the Forest Service called the operation "Shoshone Lodge."

Keith Dahlem operates the nearby Sleeping Giant Ski Resort in the winter, while the Shoshone Lodge is open during the summer.