overview
The Lakeview Hotel was a hotel constructed next to Toluca Lake on West Sandford St. in the Resort Area of Paleville. It was built and run during Silent Hill's tourist boom in order to attract guests to visit the town.
James Sunderland and his wife, Mary Shepherd-Sunderland, stayed here on vacation prior to the events of Silent Hill 2. The Lakeview Hotel, specifically Room 312, is James and Mary's "special place", and serves as the final location.
After James and Mary left Silent Hill, the hotel was completely burned down by a devastating fire, but it appears restored and intact because of the spiritual powers of the town during Silent Hill 2. This hotel is nothing more than a conjured illusion since James expects the hotel to still be there and he likely didn't know about the fire.
The Lakeview Hotel also serves as a setting in The Grinning Man, and seems to make a cameo in Anne's Story.