In 1863, it came under the ownership of James Gouin, who named it the Russell House after a family in the United States for whom he had managed a Quebec City hotel.

Gouin later built the Caledonia Springs Hotel, a famous spa in eastern Ontario, and was appointed Ottawa Postmaster by Sir John A.

[2] Ottawa's status as the capital of the new country created a pressing demand for hotel space.

Money was spent on renovations in the 1920s, but the hotel had declined due to age and its closure was announced on September 1, 1925.

Some of the reasons listed were the high cost of heating the structure, and the higher number of staff to operate the hotel, compared to a newer facility.