At the end of the 19th century a project was launched to build a facility capable of offering a full range of services (the first building at a height of 1630 m above sea level to have electricity). The hotel was bound to become legendary. Around 1893 the imposing yet refined and elegant building of the GRAND HOTEL KAREZZA was built by local workers right there where swamps and scrubs used to be. There were even times when 560 people were working at the construction site. It was inaugurated on July 8, 1896 with great pomp in the presence of prestigious figures of "Mitteleuropean" aristocracy.
The celebration's main attraction was something truly incredible for the time: at sunset the hotel's hundreds of windows lit up with electric lighting. It was an absolute novelty never seen before in the area.
On July 13, 1897 the chapel of St. Joseph was built to meet the demand of the hotel's guests and of the local inhabitants for spiritual comfort. It was considered as integral part of the hotel and hence taken care as such.

In August 1897 Empress Elizabeth of Austria-Hungary (better known as "Sissi") stayed at the hotel on the advice of her personal physician who, together with Dr. Christomannos, the promoter of the Carezza project, changed the complex into the Empress's summer residence.
On the occasion of the Emperor's birthday, the 18th of August, a marvellous party was held in the hotel's halls. It was a great social and patriotic event. The fame of Grand Hotel Karezza crossed the borders of Europe and at the beginning of the new century tennis courts and a 9-hole golf course designed by an American were built. The Hotel's surroundings were transformed into open spaces including a park with benches, lawns, footpaths and playgrounds. The Grand Hotel marked also the beginning of a gastronomic tradition: the menu included, among other things, "Filet a la Wolkenstein", fresh trout from Lake Garda, "kebabs a la Sowaroff", the famous "Gateaux Andrea Hofer", all accompanied by the wines typical of every wine-growing region and country.
On August 15, 1910, at 9:45 in the morning, Nova Levante saw the beginning of the procession of "Our Lady of August". Some of the people at the procession saw a black cloud of smoke hanging over the Grand Hotel: a huge fire destroyed the hotel completely without causing any victims but only enormous material damage.

It was decided almost immediately to rebuild the hotel, which was inaugurated larger and more beautiful than before: 350 rooms with almost 500 beds. The new hotel required 200 - 220 employees to make it work efficiently. During WWI the Grand Hotel was the headquarters of the Austrian forces. In 1920 the entire building was renovated to eliminate the scars left behind by the war, which had almost completely stifled tourism. Only in 1925 was it possible for the hotel to resume its activities in full. By then it was no longer the favourite destination for aristocrats and the jet set of the time, who were replaced by capitalists and businessmen coming mainly from abroad. Even horse-drawn coaches had disappeared. The Grand Hotel could now be reached by car thanks to the widening of the road across Val d'Ega.

Decades of great prosperity, left almost unscathed by the Great Depression, followed. This period saw also the permanent presence of a 6-musician orchestra that added a special touch to the hotel's charm. This was the atmosphere found at the Grand Hotel by the writer Agatha Christie who set the plot for one of her novels, The Big Four, right here in the Lake Carezza area. The story's ending takes place in the Latemar Labyrinth. WWII marked the beginning of a period of decline during which the Germans used the hotel as a hospital and rest home for senior SS officers and only in 1947 was it possible once again to use it for its original purpose. It did not take very long before famous guests started coming to the hotel again. The 3rd of August was a memorable day: in fact, British Prime Minister, Winston Churchill, stayed at the hotel with his wife and his entourage. Thanks to the marvellous weather and the beautiful and inspiring sights, he could devote himself completely to his favourite hobby: painting. The rooms where he stayed are called today the "Suite Churchill" to commemorate his visit