Originally a summer home like so many of Cape May's inns, this one stayed in the John Craig family until the 1950's. It was an apartment house until the 1980's when it became an inn. Almost right away the innkeepers received reports of ghostly activity.
One female guest came down in the morning after spending the night in the Lucy Johnson Room and thanked the proprieter for sewing the button on her trousers. The owner did not sew it on. It seems the guest had left a needle and thread and the button lying there, but hadn't gotten around to sewing it on. No one else staying in the room had sewn it on, either.
Other guests and friends of the owners have reported feeling a presence in the Lucy Johnson room. Aside from the feeling of the presence, the closet door has opened by itself.
In the room across the hall, a woman woke in the night to see a small red-haired girl standing at the foot of her bed. So far, she is the only one who has seen it, so that particular experience could have been related to the woman herself and not the inn.