The frenchman Augustin Lancelot de Quatrebarbes opened the first Alterpavillion on 20 August 1799 and is a building rich in tradition in Hamburg, where a café rich in tradition was located in front of the current restaurant. The Alsterpavillion is located on the Jungfernstieg, a promenade along the Binnenalster. There, in the 19th century, Jungfernstoeg became one of Harburg's most popular destinations and another building was erected between 1835 and 1841.
Swing concerts were held in the Alsterpavillion during the Third Reich, although this kind of music was rejected by the National Socialists. In 1942 the pavillion was destroyed during a bombing raid. On the basis of plans by architect Ferdinand Streb, the existing semi-circular sixth building with a flat roof was built between 1952 and 1953 on the perserved plinth floor and rebuilt between 1992 and 1994.