At the beginning of the 20th century in the coastal area of Valbandon there was a fish processing and ice making plant. It seems that the plant was not profitable enough, and so led to the idea of tourist orientation, which was at the time beginning to develop in certain destinations of the “Austrian Riviera”, especially Brijuni, Opatija and Lovran, Mali and Veli Lošinj, as well as Portorož.
Berlin entrepreneurs Gustav Klink, Emil Lauer and Jacob Cumar, owners of the already mentioned plant soon obtained, from the Ministry of the Interior, with the consent of the Ministry of Trade and Public Works, the necessary permit for converting the processing plant into a tourist facility.
So, in 1911 the stock company “Valbandon Erholungsheim und Seebad Aktiengeselschaft” (Valbandon – vacation center and seaside resort, stock company) was founded. The company was based in Trieste.
The stock company had a capital of 45000 crowns divided into 2250 stocks of 200 crowns each. The company Statute was also approved. Payments for stocks could be made at the Bank of Styria. The company president was the (former) minister of railroads Emil Freiherr von Guttenberg from Graz.
In 1911 Valbandon was mentioned as a seaside resort in the directory of the Austrian illustrated monthly magazine “Adria”. In 1912 that same magazine presented promotional information about Valbandon: it had a nicely arranged beach with 45 cabins, the hotel “Valbandon” was opened on June 1, 1911 with four annexes and among them “Villa Maria” was especially worth mentioning. The hotel and villas had a capacity of 60 rooms.