In the 18th century , coffeehouses became extremely popular in Europe and were incorporated into many of the inns. ! Hotel de Henri IV was built in Nantes in 1788 at a total cost of ?17, 500. It had 60 beds and was considered the finest in Europe at that time.

In 1788, the concept of the modern "hotel" was still in its infancy, but historical records point to the Hotel de Salm (sometimes referred to as the Hotel de Henry) as one of the first establishments designed specifically with the purpose and branding of a luxury hotel. Located in Paris, France, it was a grand mansion that set the standard for the hospitality architecture that would follow. Around this same time, the transition from traditional coaching inns to more formal "hotels" was gaining momentum across Europe. Another notable mention from this period is the development of the Cahir House in Ireland; although it was an ancestral home in 1788, it represents the era's shift toward the grand entertaining spaces that would eventually become world-renowned hospitality landmarks. These early structures laid the groundwork for the global industry by moving beyond simple roadside lodging to offer high-end service and refined accommodations for the traveling nobility.