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The hotel was first conceived by the railway, at the end of the 19th century, as a vacation destination to lure moneyed travellers into taking trains and heading West. By the time airplanes and automobiles had displaced the trains it had gained sufficient renown to have a life of its own. The Canadian Pacific Railway has long ago sold it to other interests.

From the start the goal was to exploit the stunning natural beauty of the emerald-green lake and of Victoria glacier which rose above it. There were also many hiking and canoeing itineraries for nature lovers. Eventually, all the natural areas around the hotel were incorporated into the Banff National Park. This park has been declared a World Heritage Site by UNESCO.

Originally built to function only in summer, the hotel was winterized in 1982 and now offers all of the regular ski resort fare during the winter months. In addition to the usual skiing, ice skating and snowboarding, there are sleigh rides, ice sculpture contests and snowshoeSnowshoes are a form of footwear devised for travelling over snow. They work by distributing the weight of the person over a larger area so that the person's foot doesn't sink into the snow. Traditional showshoes have a hardwood frame with leather lacings excursions.

The resort is owned and operated by Fairmont Hotels and ResortsFairmont Hotels & Resorts is a Toronto, Ontario based owner/operator of luxury hotels and resorts in Canada, the United States, Mexico, Bermuda, Barbados and the United Arab Emirates. It holds a 83. 5% controlling interest in Fairmont Hotels Inc. a 100% i of Toronto.