In 1864, land was purchased on which to erect a chapel designed by Émile Boeswillwald, the inspector general of historical monuments.
 The chapel, dedicated to Our Lady of Guadeloupe, was consecrated in September 1865 and incorporated an eclectic mix of Roman and Byzantine art with Hispano-Moorish elements from Seville and Granada.
Alexandre-Dominique Denuelle and Louis Steinheil completed the decorative painting.
 In 1867, the villa was renovated and another floor was added.

An 1867 description was still unenthusiastic:
A few minutes before we reach Biarritz, we pass on our right hand the private chapel of the Empress, and the gates leading to the Villa Eugénie, to the latter of which a large box is attached with the words 'BOÎTE AUX PETITIONS,' inscribed in prominent letters.
The Villa itself we can see through the shrubbery, a plain substantial building close to the shore ... but bare and bleak-looking, exposed on every side to the wind, although the shrubs and trees that were planted around it have grown up during the last two or three years, and give it an appearance of shelter on the land side.
It is the least picturesque and the bleakest spot in Biarritz, and almost the only one, whence no good view of the Spanish mountains ... can be obtained.

Biarritz remained fashionable after the fall of the dynasty in 1870.
 With the return to a republican constitution for France, the question of ownership of the villa and its contents, and of other property of the Bonapartes, became a topic of parliamentary debate.
 It was agreed that the state would take possession of the most valuable furnishings.
 In 1880, the Empress Eugenie sold the estate to the Banque de l'Union Parisienne.
 The villa was converted into a hotel casino, the "Palais Biarritz".
 In 1893, it became a prestigious hotel receiving royalty including Queen Victoria and the Empress Elisabeth of Austria, better known by the nickname Sisi.

According to an 1883 travel book:
Biarritz is a small but picturesque town, which was brought much into notice by the Empress Eugenie, who used to reside there every year.
It is distinguished for its very selected society, which assembles both for sea bathing and the winter season.
 The scenery is beautiful, although the vegetation in the immediate environs of the town is rather scanty.
The town is built like an amphitheatre on the rising cliffs of the Pyrenees, and has some fine modern buildings, of which the Villa Eugenie is one of the most striking.
In 1864, land was purchased on which to erect a chapel designed by Émile Boeswillwald, the inspector general of historical monuments.  The chapel, dedicated to Our Lady of Guadeloupe, was consecrated in September 1865 and incorporated an eclectic mix of Roman and Byzantine art with Hispano-Moorish elements from Seville and Granada. Alexandre-Dominique Denuelle and Louis Steinheil completed the decorative painting.  In 1867, the villa was renovated and another floor was added.
An 1867 description was still unenthusiastic:
A few minutes before we reach Biarritz, we pass on our right hand the private chapel of the Empress, and the gates leading to the Villa Eugénie, to the latter of which a large box is attached with the words 'BOÎTE AUX PETITIONS,' inscribed in prominent letters. The Villa itself we can see through the shrubbery, a plain substantial building close to the shore ... but bare and bleak-looking, exposed on every side to the wind, although the shrubs and trees that were planted around it have grown up during the last two or three years, and give it an appearance of shelter on the land side. It is the least picturesque and the bleakest spot in Biarritz, and almost the only one, whence no good view of the Spanish mountains ... can be obtained. 
Biarritz remained fashionable after the fall of the dynasty in 1870.  With the return to a republican constitution for France, the question of ownership of the villa and its contents, and of other property of the Bonapartes, became a topic of parliamentary debate.  It was agreed that the state would take possession of the most valuable furnishings.  In 1880, the Empress Eugenie sold the estate to the Banque de l'Union Parisienne.  The villa was converted into a hotel casino, the "Palais Biarritz".  In 1893, it became a prestigious hotel receiving royalty including Queen Victoria and the Empress Elisabeth of Austria, better known by the nickname Sisi.
According to an 1883 travel book:
Biarritz is a small but picturesque town, which was brought much into notice by the Empress Eugenie, who used to reside there every year. It is distinguished for its very selected society, which assembles both for sea bathing and the winter season.  The scenery is beautiful, although the vegetation in the immediate environs of the town is rather scanty. The town is built like an amphitheatre on the rising cliffs of the Pyrenees, and has some fine modern buildings, of which the Villa Eugenie is one of the most striking.
Hôtel du Palais