This historical landmark was first constructed in 1863, totally destroyed by fire in 1898, rebuilt in 1900. First hotel in State to have running water and electric lights. 
HOTEL SHELBY - "ALABAMA'S OLDEST" - SHELBY, ALABAMA
I don't know any thing about the little house next door, but bet it had some thing to do with the Hotel. This web site I have posted is so interesting. I will say again You never know what you will see around the bend. This was a wonderful find.
http://www.rootsweb.ancestry.com/~alshelby/shelbyhotel.html
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