The original Rice Hotel was owned by M.E. Rice and managed by Roy Rice. The Rices also owned the Nachusa Tavern in Dixon and the Lincoln Tavern at Sterling, among others. In 1926, they sold the business to J. L. Norton of Streator, Illinois. He demolished the first hotel and, in 1927, constructed the extant building. It was often called the "Rice Motor Hotel" because of its popularity with motoring tourists. The building was converted into offices for Northern Illinois University in 1982.