Station Hotel originally served as a hotel next to Ellon railway station which opened in 1861. The station was situated on the Formartine and Buchan Railway which ran from Peterhead/ Fraserburgh to Dyce. In 1897 the station became a junction when a new line opened between Ellon and Boddam.

The station survived until 1965 when passenger services were withdrawn, and the line was closed to freight in 1978 with the tracks being lifted shortly afterwards.