A large part of the hotel was completely destroyed in the great fire of 1888. In 1901 the hotel received its present fairytale castle appearance with towers and oriels “à la Neuschwanstein”. During the First World War and until 1921 the Hotel Gütsch remained closed. During the Second World War it had to perform military service and accommodated in turn refugees, returning emigrants, and prisoners of war.
In 2010 the city of Lucerne granted the new owner Alexander Lebedev permission to extend and renovate the hotel and in 2014 the hotel reopened its doors after a thorough renovation. The last renovations in 2014 focused particularly on the preservation of historical details such as ceiling stucco, wood carvings, parquet floors, and hand-painted wood panelling. English interior designer Martyn Lawrence Bullard has been successful in Château Gütsch back its historic charm while enriching it with all the modern amenities that discerning hotel guests expect.