The Milligan Hotel is situated on the 1st floor opposite side of the first block in Prawn Island. The Milligan Hotel's sign is based on the real-life sign of a hotel of the same name since the 1890s in the small town of Miles City, Montana. The hotel charges rates starting from $150 and offers free parking along with soft water service. However, there's only one small entrance to the hotel with a parking lot sign, although no such parking lot exists. The hotel has been the subject to rumored paranormal activity. Players claim to have heard screams coming from the hotel and encounter Jeff the Killer, although no such claim has been demonstrated to be authentic. The infamous Alleydoor1 texture can also be found by the hotel.