In 1934, Exequiel Bustillo, president of the Argentine National Park Service, created Nahuel Huapi National Park. He called upon his brother, famed architect Alejandro Bustillo, to design a resort to attract wealthy tourists to the area.
First opened in 1939, Llao Llao Resort was built in the style of the great Canadian lodges. Five thousand trees were cleared to build the resort. Soon after its completion, the building burned to the ground but was quickly rebuilt and reopened in 1940.
Following the outbreak of World War II, the hotel housed many wealthy patrons looking to escape the fighting in Europe. Although the resort hosted many high-profiled guests, it eventually saw a decline in revenues and was forced to close in 1976. The building fell into disrepair for over a decade.
In 1991, ownership of the resort was privatized and the hotel was reopened in 1993.