The Dandolo Palace was built for the Dandolo family in the 14th century.

In 1822 Giuseppe Dal Niel, nicknamed "Danieli", rented the second floor of the building, turning it into a hotel. Only 3 years later, thanks to the great commercial success, he was able to buy it. The Dal Niel immediately understood the importance of the building, which has always been an extraordinary place for meetings and a cosmopolitan center of the city, and submitted it to an accurate and radical restoration without paying any attention to expenses.

From the beginning, on the ground floor there were several shops and shops, from a period photo dated 1857 we see the Caffè Brigiacco, which after years of great success the coffee changed ownership and changed its name to "Caffè Orientale", given the habit of the owners, two Greek brothers, to dress in the oriental style.

In 1895 the hotel changed ownership again and underwent a new restoration, to introduce all those modern devices: electric light, steam radiators, elevators and other luxuries. It is also annexed to the hotel, and connected to it with a suspension bridge between the two first floors, the building adjacent to Palazzo Dandolo.

On March 17, 1906, the Italian company Grandi Alberghi del Conte Volpi took possession of the Hotel Royal Danieli thanks to the acquisition of the Venice Hotel Limited, which already owned the Grand Hotel, the Roma & Suisse, the Vittoria, the Beau Rivage.