Complex sentence: Realizing that when new settlers like himself arrived to Penetangore they would need somewhere to stay Paddy Walker soon built a Hotel situated near the mouth of the Penetangore (later the Harbour).
Split into simpler sentences: Realizing that when new settlers like himself arrived to Penetangore they would need some where to stay. So Paddy Walker soon built a Hotel situated near the mouth of the Penetangore (later the Harbour).