Øyer Gjestegård was started in 1978 by the then owner and operator Kjell Madsen. He had a vision of creating a restaurant and accommodation with soul and character. Kjell Madsen, together with his then wife, made decorations, furniture and equipment. This gave Gjestegården its distinctive character and it quickly became apparent after the opening on 1 July 1979 that this was a success.
At that time, the guesthouse had 16 rooms, a cafeteria, the octagonal and the banquet room Rødsalen. In 1982, Blåsalen opened and another 16 rooms. The last major expansion made by Kjell and Hjørdis Madsen was in 1987 with a water discotheque, which became very popular.
In 1996, Viking Gruppen AS (now Wellegruppen AS) bought Øyer Gjestegård. On May 15, 2007, the name was changed to Hafjell Hotel & Apartments. In the years prior to the name change, the inn, kitchen and conference halls were refurbished, and the hotel got a new fireplace lounge. In 2008, all rooms were renovated at the hotel, and in 2011, a major renovation of the restaurant was carried out into several cozy living rooms and a new buffet area. The hotel was also environmentally certified as an Eco-Lighthouse in the winter of 2011 and won the Universal Design Award Tourism award in 2013. In 2017 and 2018, Hafjell Hotel was county winner in Oppland with the best hotel breakfast named by Twinings Best Breakfast.