This was originally the Grand Hotel which was built in 1881. The basement area was were the bar was situated and the upper levels were the hotel.

During it time it has played host to many famous people including Doc Holliday and The Clanton gang. Ike Clanton and 2 of the Mclaury brothers were known to have stayed there the night before the O K Corral gunfight. There still is a tunnel which leads to the old mines, this was gradually dug out by the janitor Swamper who used it to gain access to the mine to get silver. It is unsure what he did with it when he got it though. The hotel was destroyed by the fires in 1882 the only things that remained were the arches, floor joists and long bar.

Since it became Big Nose Kates there have been changes made to it, the bar is now on the first floor and there is a gift shop in the basement. It is said it is named after Kate Elder who was one of Tombstones first Prostitutes, and even though she was pretty she had a prominent nose, hence the nickname.

There are said to be a few ghosts that wander the saloon including Swamper who is said to still be protecting his hoard of silver, cowboys, seen throughout the building also there have been cold spots, the sound of music and singing, object falling to the floor, the sound of footsteps and the lights switching on and off.