It is believes that David King of Scots gave his brother the hall after Cumberland was ceded to Scotland. The Dalston family began with Robert De Vallibus who changed his name to Dalston in 1300.

Over the next 200 years the Dalstons were small landowners and like many others took part in border raids with the Scots and did garrison duty at Carlisle Castle.

After the dissolution of the monasteries Thomas brought 6 manors and various land from the crown, with a increase in wealth for the family Dalston Hall was enlarged.

During the civil war it became a stronghold for one of the leading Royalists and General David Leslie made his headquarters there.

Edmund Wright Stead brought the hall in 1897 and carried out lots of restoration work. In more recent years the hall was used as a youth training centre and in 1971 it was turned into a hotel.

Lots of paranormal activity is said to be isolated in the Baronial hall, with figures seen lurking by the iron gate door and a entity which looks like black fog rises from the floor it is known as Mr Fingernails. Also a lady in Tudor dress as been seen in the gallery, a man in the cellar who is sometimes known to pass workers there tools, giggles of children are heard, objects move and in room 5 it has been reported that sometimes guests have awoken to find that the bedclothes have been removed, and they are neatly folded at the bottom of the bed.