It was built in 1884. in only ten months, on the site of previous Tomasic family vineyard. The hotel was originally planned as a sanatorium for lung disease patients. In front of the hotel to the shore stood terrace (of most elegant caffe bar in the world) which was later withdrawn from the coastal road and on the spot were hot baths were, in 1913 Crystal Ballroom was built , which today hosts the most festive balls and events in Opatija.