The further history of Dievenow is related to rapid developement of medical infrastructure since 1890s in Germany, which is reflected in many sanatoriums and health resort buildings. These assumptions were made in order to improve health and efficiency of the working citizens through quality recretion. In this spirit, on the initiative of the Railway Officers Association, a holiday center for railway employees called “Dienstsellenvorsteher” is being established in Dziwnów. It was built on a plot next to Villa Silvana, which included a garden and a bathing facility.

The guesthouse was transformed into a holiday resort exclusively for members of the association, and in 1902 a restaurant was added.

The expansion of the villa was probably planned from the very beginning, therefore the request for a building permit was submitted in 1903, and at the end of March 1904, construction works began and in the summer or autumn of 1905 the hotel was put into use. The hotel was build in typical for mature historicism eclectic forms, referring to the Gothic and to the so-called rural architecture (Landstil).

In the first quarter of the twentieth century, it was popular to look for a style that would express the spirit of the region – Heimat (a small homeland) – so the inspiration of brick Gothic in the Dziwnów center is not accidental, brick Gothic was at that time a characteristic feature of Pomerania