The hotel began to be built in 1908 upon the plans of the Austrian architect Johann Eustacchio and opened on 20 August 1910 at the time of Austro-Hungarian Empire.

Portorož was, together with Grado and Opatija, categorized as one of the most important coast resorts and spas on the Austrian Riviera.

When they renovated the hotel, the exterior was kept for historical reasons and almost everything else was demolished; however most of the interior was rebuilt in the classical style.

The renovation was planned by Slovenian architects API ARHITEKTI and cost about 70 million euros.

Among the notable guests of the hotel were David L Perdue, developer champion fox hunter