Dalen Hotel was built in 1894, its architecture inspired by Norway's historic stave churches. From the very beginning, it was an imposing structure, built in the "dragon style", the Norwegian version of the "Swiss chalet" architecture popular throughout Europe at that time. A guide to Norway's architectural heritage offers the following description of the hotel:
"Dalen Hotel is not only one of the greatest tourist hotels from the fin de siècle period, but also one of the best preserved. Its interior is every bit as magnificent as its exterior suggests. In renovating, restoring and renewing the hotel, its owners have been at pains to ensure that the work is in keeping with the spirit of the original."