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This old motel was being used as a 2nd building for the Hospitality House which stood next door but it was once a stand-alone motel. I confirmed this on the Genealogy Trails site thus: "The site of the first Grayling Mercy Hospital was North McClellan Street in Grayling. The AuSable Motel, across the street from St. Mary’s Catholic Church, now occupies the ground where the first hospital stood. It was a 30-bed facility which, according to Rasmus Hanson, a local lumberman and principal donor in the project, was to stand as a monument erected by the lumbermen of northern Michigan 'to relieve the physical evils and suffering of humanity,' as reported in the first Mercy Hospital annual report."
This church still stands across the street from this lot which is now empty.