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On 19 November 1894, well-known master builder and architect Kasimir Böhner started with construction of the building on present-day Henkestraße 28. The foundations for the hall and music pavilion were laid shortly after that.

Between the years 1898 and 1923 the existing building was extended to include a building for supplies, and the Erlwein & Schultheiß export brewery became new owner. After completion the building was used by the Erlangen Theatre, and soon the first restaurants moved in. During the period of the First World War the building was converted into a military hospital by military authorities.

From 1923 up to and including 1945, the company EOS utilised the building for storage and for shipping its products.

After the end of the Second World War, the building was confiscated by the US occupying forces to use as a home for young people in Erlangen. The Zeitner construction company strongly promoted the construction of various office buildings in the following years. For instance, further commercial properties were built on Henkestraße until 1954.

The Association of Erlangen Actors occupied the existing building from 1954 to 1964 and continued to use this as a theatre.

The entrepreneur Otto H. Eck purchased the property in 1968 and built a 37-room hotel with the beer cellar known as "Löwenbräukeller". The first renovation measures occurred between 1982 and 1984. The hotel was converted into an international hotel during this period. Since 1984 there have been 159 rooms, several conference and event areas as well as a separate restaurant area.

Hotel Bayerischer Hof | B&R Hotelmanagement GmbH & Co. KG took over the hotel on 1 July 2007, and immediately began with modernisation of the entire lodging and restaurant area, rooms, exterior façade as well as the redesign of the lobby and outdoor facilities.

HV II Hotelverwaltung GmbH, which is part of the Steinkogler Group, acquired the hotel in September 2010.

The lobby, the traditional vaulted cellar and the terrace area were redesigned and renovated in the spring and summer of 2016. A property for the enlargement of the hotel was additionally purchased in the same year.

For 2017 and 2018, the planning and implementation of an overall modernisation concept under the motto "Hotel of the Future" will start.