Gstaad Palace
A historic privately operated luxury hotel and Alpine resort overlooking Gstaad, Switzerland.
Last updated August 22, 2026
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Overview
Gstaad Palace is a landmark luxury hotel in Gstaad, in the Bernese Oberland of Switzerland. Opened in December 1913 as the Royal-Hôtel and Winter Palace, it was designed in Swiss chalet style by Dutch architect Adrien van Dorsser and built on elevated ground overlooking the town. The property combines traditional Alpine architecture and long-established hospitality rituals with accommodation, fine dining, wellness, sport and nightlife facilities. The hotel originated with Robert Steffen, a local schoolteacher who acquired the site in 1905 and assembled financial backing from investors in Lausanne and Geneva. Its launch coincided with the outbreak of the First World War, which initially restricted international travel and weakened business. The Palace benefited from renewed tourism during the 1920s but later faced the effects of the Great Depression and wartime disruption. Ernst and Sylvia Scherz became the hotel's directors in 1938, and after the majority owner sold the financially troubled property in 1947, the Scherz family continued operating it. Following the Second World War, Gstaad Palace developed a strong reputation among royalty, political figures, entertainers and other prominent international guests. The hotel's profile was reinforced by its participation in the cultural and social life of the resort. Ernst Scherz supported the establishment of events such as the Menuhin Festival Gstaad and later arranged performances by artists including Maurice Chevalier, Louis Armstrong, Ella Fitzgerald and Marlene Dietrich. The Palace became particularly associated with celebrity tourism during the 1960s and 1970s, when guests included Elizabeth Taylor, Richard Burton, Sophia Loren, Grace Kelly and Roger Moore. Its GreenGo nightclub, opened in the early 1970s, became an important part of the hotel's evening offering. Management passed through successive generations of the Scherz family. Ernst Andrea Scherz assumed operational responsibilities in 1968, and his son Andrea Scherz took over management duties in 2001. The property added a spa with sauna and hammam facilities in the early 2000s, refurbished its sixth-floor suites in 2013 and 2014, and carried out a broader renovation in 2018. It remains a seasonal resort with winter ski tourism and summer leisure, cultural and outdoor activities. The hotel's current offer includes guest rooms and suites, several restaurants and bars, indoor and outdoor pools, spa and fitness facilities, tennis and other recreational amenities, the GreenGo nightclub, and access to the traditional Walig Hut. Its restaurant portfolio has evolved over time, including the transformation of the principal dining room into Le Grand Restaurant in 2025. The hotel has also remained visible in popular culture and media: exterior scenes appeared in The Return of the Pink Panther, and Roman Polanski filmed The Palace at the property in 2022. Gstaad Palace is a member of The Leading Hotels of the World, an independent marketing and distribution organization for luxury hotels. The business remains privately held and family operated, with its identity built around continuity, discretion, Alpine setting and high-touch service.
History
The origins of Gstaad Palace date to 1905, when Robert Steffen, a schoolteacher from Gstaad, purchased land for a major hotel project. He attracted investors from Lausanne and Geneva and developed the property under the original name Royal-Hôtel and Winter Palace. Dutch architect Adrien van Dorsser designed the building in a Swiss chalet idiom. The hotel opened in December 1913, but the outbreak of the First World War immediately limited international travel and made the business difficult to establish. The Palace experienced stronger demand in the 1920s before the Great Depression created another period of pressure. In 1938, Ernst and Sylvia Scherz became directors. During the Second World War, a cellar vault was used to protect money and valuables belonging to the Swiss Bank Corporation, now UBS. This vault has since been incorporated into La Fromagerie, a fondue restaurant. It is distinct from the Schweizerhof command bunker in the mountain behind the hotel, a separate Swiss military installation with no direct operational connection to the hotel's vault. Low wartime patronage contributed to financial difficulties, and the majority owner sold the hotel in 1947. The Scherz family has operated the property from that point onward. In the postwar period, Gstaad Palace attracted royalty and other prominent guests, including King Leopold III, the King of Afghanistan and members of the Spanish royal family. Ernst Scherz also supported cultural programming intended to strengthen Gstaad's appeal, including the creation of the Menuhin Festival Gstaad in the 1950s. During the 1960s, Scherz expanded the hotel's entertainment programme by bringing internationally known performers to the property. Maurice Chevalier, Louis Armstrong, Ella Fitzgerald and Marlene Dietrich were among the artists associated with the hotel's programme. Ernst Andrea Scherz took over management duties in 1968. The Palace then became increasingly identified with celebrity and high-society tourism; figures associated with the hotel included Elizabeth Taylor, Richard Burton, Sophia Loren, Grace Kelly and Roger Moore. The GreenGo nightclub opened in the early 1970s, adding a nightlife venue to the resort's hospitality offer. Exterior views of the hotel were later used in the 1975 film The Return of the Pink Panther. The property entered the twenty-first century under continued Scherz family management. A reported purchase offer from Michael Jackson in 2000 was rejected. In 2001, Andrea Scherz succeeded his father in management. A spa incorporating sauna and hammam areas was added, extending the hotel's offer beyond accommodation and dining. Sixth-floor suites were refurbished in 2013 and 2014, followed by a wider renovation in 2018 that added or reconfigured suites. Gstaad Palace has continued to operate as a seasonal Alpine resort, serving winter ski visitors and summer guests seeking outdoor recreation, cultural events and luxury leisure. Its facilities include rooms and suites, restaurants, bars, pools, a spa, sports amenities, GreenGo and the Walig Hut. In 2022, Roman Polanski filmed The Palace at the hotel. In 2025, the principal restaurant underwent a complete renovation and reopened as Le Grand Restaurant, a project described as part of a substantial investment programme. The hotel remains a member of The Leading Hotels of the World and continues to be operated privately by the Scherz family.
- 2025
Main restaurant reopens as Le Grand Restaurant
[1]The principal restaurant was completely renovated and reopened under the Le Grand Restaurant name.
- 2018
Broader property renovation
[1]A renovation incorporated additional suites and updated parts of the property.
- 2013
Sixth-floor suite refurbishment begins
[1]The sixth-floor suites entered a refurbishment programme that continued into 2014.
- 2001
Andrea Scherz takes over management
[1]Andrea Scherz assumed management duties after his father, Ernst Andrea Scherz.
- 1975
Hotel appears in The Return of the Pink Panther
[1]Exterior shots of Gstaad Palace appeared in the Peter Sellers film The Return of the Pink Panther.
- 1970
GreenGo nightclub opens
[1]The hotel added its first nightclub, creating a prominent nightlife component within the resort.
- 1968
Ernst Andrea Scherz assumes management duties
[1]Management responsibilities passed to the next generation of the family.
- 1947
Scherz family takes over operation
[1]After wartime financial difficulties, the majority owner sold the property; the Scherz family has operated it since.
- 1938
Scherz family leadership begins
[1]Ernst and Sylvia Scherz became directors of the hotel.
- 1915
Early tennis tournament hosted
[1]The hotel hosted a men's tennis tournament on outdoor clay courts; the event later developed into the Swiss Open.
Products and positioning
Historic, family-operated European luxury hospitality combining Alpine resort access, traditional service, celebrity heritage and contemporary wellness and dining.
Accommodation · 1913
Guest rooms and suites
The hotel's core offering consists of luxury rooms and suites in a historic Alpine resort setting. Accommodation has been periodically upgraded, including the refurbishment of sixth-floor suites in 2013–2014 and a wider renovation in 2018. The product is positioned around privacy, traditional service, views over Gstaad and access to the hotel's dining, wellness and recreational facilities.
Fine dining · 2025
Le Grand Restaurant
Le Grand Restaurant is the renovated principal restaurant of Gstaad Palace. It combines a contemporary redesign with the hotel's historic formal-dining identity and classic table-side service traditions. Its reopening in 2025 represented a major refresh of the property's central dining experience.
Alpine dining
La Fromagerie
La Fromagerie is a fondue restaurant located in the former cellar vault associated with the hotel's wartime history. It connects a traditional Swiss Alpine dining format with one of the property's distinctive historic spaces.
Nightlife · 1970
GreenGo
GreenGo is the hotel's basement nightclub, opened in the early 1970s. It expanded the Palace's role from a daytime and dining resort into an evening entertainment destination and remains part of its distinctive hospitality identity.
Wellness · 2001
Spa and wellness
The Palace's spa offer includes sauna and hammam areas alongside broader wellness and relaxation facilities. The spa was added in the early 2000s as the hotel broadened its luxury-resort proposition beyond accommodation, dining and winter sports.
Alpine experience
Walig Hut
Walig Hut is a traditional Alpine hut associated with the hotel. It extends the Gstaad Palace experience beyond the main building and offers guests an environment rooted in the region's mountain culture and landscape.
Marketing campaigns
- 1960International entertainment programme
Switzerland · International
The hotel brought prominent performers, including Maurice Chevalier, Louis Armstrong, Ella Fitzgerald and Marlene Dietrich, to its entertainment programme.
Outcome. The programming helped establish the Palace as a celebrity-oriented Alpine resort during the 1960s and 1970s.
- 1950Cultural-event hospitality programme
Switzerland · International
Ernst Scherz supported cultural events including the Menuhin Festival Gstaad, using music and cultural tourism to strengthen the resort's appeal and the hotel's position within Gstaad's social life.
Outcome. The programme contributed to Gstaad Palace's identity as a cultural and high-society destination, although a separately attributable financial outcome is not documented.
Brand decisions
2025
Main restaurant redesigned and relaunchedGeneration changeBackground
The hotel sought to maintain its traditional luxury positioning while updating a central guest-facing dining space.
Action taken
The main restaurant was completely renovated and reopened as Le Grand Restaurant, combining contemporary design with traditional table-side service.
Aftermath
The reopening formed part of a broader investment programme intended to sustain the Palace's position among Europe's luxury hotels.
2001
Generational management transitionOtherBackground
After decades of leadership by Ernst Andrea Scherz, the family prepared the next generation to manage the hotel.
Action taken
Andrea Scherz assumed management duties and later became a leading representative of the property.
Aftermath
The transition preserved the hotel's privately held, family-operated model while supporting continued investment in spa, suites and restaurant facilities.
2000
Rejects reported purchase offer from Michael JacksonM&ABackground
Michael Jackson reportedly offered to purchase Gstaad Palace.
Action taken
The owners declined the offer and retained private family ownership.
Aftermath
The episode reinforced the property's visibility as a highly sought-after celebrity destination, while the hotel remained under Scherz family control.
Sources2 sources
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