The property first opened in 1906.
The renovation will include the restyling of all guestrooms and suites, the redesign of public areas, restaurants and bars as well as the landscaping of the outdoor grounds.
Following the completion of the renovation, Mandarin Oriental Palace, Luzern will comprise 146 rooms and suites offering views of the lake and mountains. There will be a restaurant and a bar together with social and meeting facilities and a spa and fitness room.
Mandarin Oriental Hotel Group’s group chief executive, James Riley said: “We look forward to opening a new hotel in Switzerland, which will complement our growing portfolio in Europe, including our other Swiss hotel in Geneva. Lake Lucerne has long been a popular destination for luxury travellers and it will now be home to one of Switzerland’s most exclusive properties, providing guests with Mandarin Oriental’s exemplary service for which the brand is renowned.”