Up to the 18th century the site was known for its potato market, where farmers from Chagford and Moretonhampstead brought goods to be sold. It thrived, so the area prospered as a result.
A map was produced in 1765 which explains the current name of the site; the road crossed both the West Dart and the Cowsic rivers, requiring two separate bridges. However, when the hotel opened in 1762 it was called Saracen's Head, and the current name was substituted by the Allanson family in the early 1900s.
In 1907 a Devonia handbook advertised Two Bridges Hotel as a favourite resort for fishermen and ideal for those who wished for a restorative holiday in Devon. It turned out to be a popular meeting point for tourists and walkers, which it remains today.