In 1868, instigated by the Craftsmen's Guld (Håndværkerforeningen), the town began to sell 5 rigsdaler shares in support of the project.

A bust of Frederick VII had been installed in the park back in 1868 and it was therefore decided to name the building Frederiksminde (Frederik's Memorial).

Already from its opening the new venue struggled economically and was after five years sold in auction to the Craftsmen's Guild.

In 2003 it was acquired by Hans Michael Jepsen, a Hong Kong-based businessman with a history of purchasing and refurbishing historic buildings in provincial Denmark.

In February 2016, Hotel Frederiksminde received a star in the first Michelin Guide to dining in the Nordic countries.