Est. 1913 · Arts and Crafts Architecture · Lake Michigan Hospitality · Karsten Family
A wooden hotel previously occupied the property at 122 Ellis Street in Kewaunee until a kitchen fire destroyed it in four hours in 1912. Owner William Karsten Sr. recovered insurance proceeds and commissioned a replacement hotel in the Arts and Crafts style emerging as the dominant Midwestern commercial vernacular of the period.
The new Hotel Karsten opened on February 14, 1913. The building featured 52 guest rooms, a 90-seat dining room, and a bar with a separate exterior entrance — a design feature common to early-20th-century Wisconsin hotels, allowing the bar to operate independent of the lodging functions. The Lake Michigan shoreline location placed the hotel at the center of Kewaunee's commercial district.
William Karsten Sr. died in 1940. His son William Karsten Jr. ran the hotel until his death roughly 24 years later, at which point the hotel closed. The grandson Billy Karsten — a child member of the family — also died young, three weeks after the family patriarch in 1940, and is the source of the child-figure thread in the hotel's folklore. New owners restored the property in 1991 to its 1913 appearance at a reported cost of $750,000, reconstructing the reception desk, bar, and carved staircase.
The hotel has operated under several names — Hotel Karsten, the Historic Karsten Inn, Kewaunee Inn — and is currently the Karsten Nest Hotel, reopened in 2025 under new ownership by California investor Alex Yanik with rooms now configured as a 23-room boutique inn. The Wisconsin Ghost Investigations Team conducted multiple investigations and issued a formal certification of paranormal activity in 2002.
Sources
- https://hauntedus.com/wisconsin/karsten-inn/
- https://www.wisconsinhauntedhouses.com/real-haunt/the-historic-karsten-inn--kewaunee-inn.html
- https://www.nbc26.com/news/karsten-hotel-paranormal-investigation
- https://onmilwaukee.com/articles/kewauneeinn
- https://doorcountypulse.com/organization/karsten-inn/
ApparitionsPhantom footstepsPhantom voicesPhantom soundsPhantom smellsCold spotsHot spotsOrbsObject movement
Reports of paranormal activity at the Karsten began circulating after the 1966 restoration, per regional folklore. Three named figures dominate the published accounts. William Karsten Sr., who died in 1940, is reported in the former owner's suite spanning Rooms 210 through 215. His grandson Billy, who died at age five three weeks after the family patriarch, is associated with the sound of running footsteps on the upper floors and occasional reports of a child's voice in unoccupied rooms.
Agatha, described in regional folklore as a former housekeeper at the hotel, is the most-reported figure. Room 310 is her associated location, where guests have described her appearing as a sudden apparition. The figure is described as standing near the bed or in the doorway, and the encounter typically lasts only a few seconds before she vanishes.
Reported activity throughout the building includes mists and orbs in photography, cold and hot spots, phantom flute music, whispering, the sound of moving furniture, the sound of breaking glass, and the running footsteps of a child. The Wisconsin Ghost Investigations Team conducted multiple investigations and issued a formal certification of paranormal activity in 2002. NBC 26 Green Bay has covered investigation visits to the property, and the Karsten has been included in regional and national 'most haunted Wisconsin' lists for over two decades.
Notable Entities
William Karsten Sr.Billy KarstenAgatha