Built by the Ito Family in 1916, was originally their private lakefront cottage, called "Hanheki Ro". In 1919, they were force to move the cottage uphill to clear for the hydropower plant, due to lack of funding, the project was handed to the Taichung Prefectural Hall, which repurpose the new building as "Hotel Hanheki Ro". After handed to the Taichung Prefectural Hall, the hotel was used as the official residence for the Japanese Crown Prince Hirohito during his visit, and also hosted Korean Crown Prince Yi Un during his visit.

Later during the Chinese Nationalist Ruling Era, the guesthouse was then occupied by Chiang Kai Shek for his personal guest house, later opened to public after his death. Until 1998 was sold to the Shining Group to reopen as The Lalu.

The Shining Group had announced plan for expanding the brand into a global brand, with goal to open at least 200 property around the world. Only 2 hotel in China are finished til now.