A prosperous merchant by the name of Edward W. Chipman and his wife, Mahala Jane Northup, were seeking the perfect location for their new home. They found such a place, and in 1865 they began construction of one of the most expensive and extravagant homes in the city. This house was completed in 1866, and by 1867 the Chipmans had taken up residence. Being a fashionable lady, well known in Halifax society, Mahala began entertaining immediately. She would host countless dances and social events, attended not only by local personages, but also by the British officers stationed in the garrison. The guests were well entertained, and were enchanted with the Chipman's new home. In one account the house was described as "...in a style, both regards to size and decoration, more like a palace than a private residence."

The Chipman's stay was short-lived, however. Mr. Chipman's dealings began to take a turn for the worse and his dry goods business failed. In 1870, the house was turned over to the Sheriff of Halifax. The bailiffs seized much of their furnishings and the house was sold at auction, where the property was bought by a real estate speculator named Patrick Costin.

Costin soon found buyers willing to pay the asking price of $14,200.00. He sold the home to two spinsters, the sisters Sarah and Jane Romans. The Romans had been operating their father's business, The Waverley Hotel, and in October of 1876 they moved the hotel into its new location. A new wing was added to the rear of the home to accommodate more guests. The Waverley soon became one of Halifax's finest residential hotels. The Roman sisters retired in 1905. The hotel passed into the hands of Harry Preedy and in 1913, Preedy sold it to Joseph Allison Clark. Clark operated a first-class establishment until 1944, when the property was purchased by the Blue Triangle Women's League. In 1960, the Sterling Hotel Company bought the Waverley Inn and began extensive restorations.