Historic Usedom Palace Hotel Closes After 125 Years Amid Economic Struggles

The iconic Usedom Palace, a luxurious 5-star hotel in Zinnowitz, is closing its doors after 125 years due to persistent economic challenges in the hospitality industry. Established in 1900 originally as 'Schwabe's Hotel,' this renowned establishment has hosted numerous celebrities, including Hollywood luminaries Roman Polański, Pierce Brosnan, and Ewan McGregor. The closure was announced by managing director Karsten Balke, who described the moment as "extremely emotional and personal" for the hotel team, emphasizing their goal to avoid financial instability. Starting November 29, 2025, renovations will convert the building into 21 upscale holiday apartments, with completion expected by April. Despite the transformation, the hotel’s distinctive exterior will be preserved to retain its historic charm.

Lars Schwarz, head of Dehoga in Mecklenburg-Vorpommern, mourned the loss of such a flagship for the region’s tourism sector. While 20 employees are affected, they are anticipated to find new job opportunities elsewhere. The management expressed gratitude toward guests who have supported the hotel throughout its long history. This closure marks the end of an era for the Usedom Palace, reflecting broader economic pressures faced by the hospitality sector in Germany.