In 1919 Brita and Per Eikum bought an old house from the farm next door, in which they opened a guest house with the name Eikums Hotel.
In 1927 the hotel changed its name to Eikum Gjestgiveri.
By 1956 the hotel had 15 rooms. That year the hotel burnt to the ground. The only item that was salvaged from the fire was the cash register in the café. The fire also consumed four other buildings in the village, including the town hall.
The hotel reopened only a year after the fire, in 1957, with 19 rooms and 35 beds.
In the 1970s the hotel was expanded with a new wing, while the old rooms were refurbished to make them all en-suite.
In 1980 the new dining hall was completed, seating around 200 people. The hotel has since been further expanded, and the old rooms have been repeatedly renovated.