Art collector and famous dentist Dr. Philippe D. Ledermann was looking for a place to present his collection to the public. He bought the Belle Epoque, had it renovated and then opened it in 1989. For various architectural reasons he eventually gave up the idea of establishing an art gallery and decided to make it a hotel in the style of the Belle Epoque instead. His aims were ambitious. The old town of Berne was to be the location of the smallest Grand Hotel in the world. Unfortunately the narrow lanes of the old town prevented the fifth star. Nevertheless, the result turned out to be a four-star-jewel with a five-star-ambience.

In the early years the hotel was run by Gauer-Management (Hotel Schweizerhof Berne), later the owner took over himself. In 2011 BE Management purchased the building and has since run the hotel with the help of a managing director.