In 1897, Hermann Volkhardt acquired the Hotel Bayerischer Hof for 2,850,000 marks and began a large modernization project. When he died unexpectedly of a stroke in 1909, his son Hermann took over the hotel, with his first big test occurring in 1944 after the hotel was destroyed by aerial bombing. In 1959, Falk Volkhardt took over as the third generation to manage the hotel and in 1969, he bought the adjacent Palais Montgelas and work began to restore the monument. The restoration project was completed in time for the 1972 Olympic Games. Shortly after the Games in 1974, the Hotel Bayerischer Hof became the first German hotel to join Preferred Hotels and Resorts. In keeping with family tradition, the hotel was passed on the Falk’s daughter Innegrit in 1992 and has since been completely refurbished and modernized.