Schengen Castle, stands as a landmark in the small village of Schengen in southeastern Luxembourg, prominently located where the borders of Luxembourg, Germany, and France converge. Its story embodies the transformation from medieval stronghold to modern luxury, reflecting the broader evolution of the region itself.

The origins of this fortress date to the 13th or 14th century, though the earliest documentary evidence appears in 1390. The original fortified, moated castle saw four centuries of history before its acquisition by industrialist Jean-Nicolas Collart in 1812. Under Collart's direction, the medieval structure was largely demolished to make way for a more contemporary residential manor. From this medieval past, only a single round tower from the 13th century remains. Following its acquisition by industrialist Jean-Nicolas Collart in 1812, the property underwent its most dramatic transformation: the medieval fortress was largely razed, with much of its material repurposed into the new manor. This transformation from fortress to family home marked the beginning of its modern era.

The castle's history is enriched by its association with notable figures. In 1871, the French writer Victor Hugo visited the Collart family here. Captivated by the surviving medieval tower, he created a sketch that became part of local lore. A well-known anecdote recounts that Madame Collart was so delighted with his artwork that she jokingly offered to exchange the castle and its contents for the drawing. Madame Collart reportedly valued the spontaneous artwork so highly that she jested about exchanging the entire property for it. A second drawing by Hugo of the tower is preserved in Luxembourg's National Museum of History and Art. After the Collart family sold the castle in 1939, the property served for nearly seventy years as a retreat and conference center operated by a religious congregation.

Following the congregation’s departure in 2008, the castle entered a period of transition. In 2024, a new chapter began with its purchase by Jean-Baptiste Marx of the JBM group, which initiated an ambitious renovation. The revitalized Hôtel Château Schengen officially reopened on June 1, 2024, launching a new chapter as a luxury hotel and event venue. The renovated establishment now offers a blend of historic ambiance and modern comfort, serving as a venue for weddings, fine dining, and luxury accommodation, officially reopening as the revitalized Hôtel Château Schengen. The castle now positions itself as a premier destination, featuring a bar open to all visitors and a restaurant serving lunch and dinner.

The castle grounds contribute significantly to its charm, featuring a baroque garden with symmetrical design and a recreated medieval herb garden. These grounds form part of the cross-border "Gardens Without Limits" network.

While the castle is often associated with the European Union due to the signing of the Schengen Agreement in the village in 1985. Though the signing ceremony took place on a riverboat, the castle's prominence naturally links it to this historic event, further enhanced by the nearby European Museum.