Under Criterion A, the building is associated with the early settlement of Mendon and was built by Ralph Forster, one of the first permanent settlers in the Cache Valley. Ralph Forster and his wife, Margaret McCulloch, made the stone house their home, hut also used it as one of two early hotels in the settlements, which is its primary significance. Ralph and Margaret's children expanded the hotel in 1913. For over forty-five years, the Forster Hotel served the community providing accommodations for railroad workers, traveling salesmen, theatrical companies, and weekend visitors to the Mendon horse races. Although, it has been a single-family residence since the 1940s, the house is still known as the Forster Hotel by current Mendon residents. It is a local landmark and one of the largest extant historic buildings in the community.
The building is significant under Criterion C as a unique example of an early Mendon traditional stone house expanded using the bungalow-craftsman style into a substantial full-service hotel. Both the original stone building and the expansion, as built by Logan contractors, Wesley and Nelson, display a high degree of craftsmanship. Although somewhat modified on the rear elevation in 2002, the Forster Hotel retains much of its historic integrity and is a contributing resource in Mendon, Utah.