In the early 1870's, building and land speculation was booming in the area of the outer Halde. The reason for this was the intention to build the train station for the future Gothard train line on the Hausermatte. In the hopes of attracting passengers from the anticipated Gothard train station, Josef Beutter and his financier, the entrepreneur and banker Friedrich Knörr, built the "Hotel de l'Europe" and opened it in 1875.
In the course of the financial reorganization of the Gothard railway enterprise, the train station project - among others - was cancelled in 1877, which led to numerous bankruptcies among the speculators. The Hotel Europe was acquired by the imposing hotel group of Franz Joseph Bucher - Durrer (of the Bürgenstock Hotels, among others) and until 1904 remained the property of this, "the largest hotel group in Europe" (quote from the Luzerner Tagblatt of May 18, 1905).