Through a series of staircase locks, the canal from Skien to Norsjø was extended to reach Bandak, with the small town of Dalen as its new endpoint.

The canal was referred to as the "eighth wonder" upon its completion, and the waterway saw heavy traffic from ferries bringing passengers from the east in Oslo and Grenland travelling towards destinations in central and western Norway.

Though Samuelsen failed to raise the necessary funds to renovate the building, he gave the hotel significant press exposure, and towards the end of the 1980s restoration efforts began in earnest.

[5] [7] The hotel, designed by architect Haldor Larsen Børve, was built in the style of a Swiss chalet with elements of National Romanticism and Dragestil.

The building has a completely symmetrical floor plan, including the two ornate towers in the center and the two wings that extend out from the main lobby.