The old road followed the south side of the lake Otrøvatnet and there was an old inn where the village now sits.

As tourism developed by the second half of the 19th century, the lodge was expanded several times into the Nystuen Hotel.

It was an important starting point for mountain trips both towards Årdal, Jotunheimen, and Hemsedal.

[2] Between 1951 and 1961, an important attraction in the village was the bears Pekka and Lisa who lived in an enclosure near the hotel.

Towards the turn of the century, Nystuen Hotell struggled with profitability and it was converted into apartments in 2005–2006.