Around 1920, the forest administration moved to Sollefteå, and Björkudden was then used as a summer residence for the former sawmill officials. Björkudden was also the home of director Bäcklund, who was manager of the sawmill until the major explosion at the mill in 1931. A consortium, Nora Textiles, bought the property in 1945 and established a sewing factory.
In 1952, Karin and Erik Dahlén renovated the building and opened it as a boarding-house and gave Björkudden its present name. In the years since then, Björkudden has been run as a hotel and restaurant by different owners and managers. In 2001 the Kivilompolo family took over Björkudden and closed it temporarily for total renoveration, which took place over a 5-year period until the Re-opening at Christmas 2006.