The old castle was first mentioned in a document of 1109, in which Bishop Otto of Bamberg appropriatet the castle to the the collegiate St. Jakob. The castle was the second residence of Bamberg's prince-bishops from 1305 to 1553. In its present dimensions, the castle was built in the early 15th Century.
In 1801, after several wars, the Altenburg was sold to doctor Adalbert Friedrich Marcus from Bamberg, a friend of ETA Hoffmann. Todays residential buildings are still partially standing on the basement of the original dwelling house, which was built in 1900.
The Knights' Hall has been preserved with the original interior. The mural on the west side, a tournament, representing, is a work of the painter Wilhelm Reutter. One of the riders represents the former second mayor stove of Bamberg.
The restaurant was formed after the takeover by the "Altenburg club". The premises were located as it is today in the cultivation of the gatehouse. The kitchen, a vaulted room was built in 1834. In the last quarter of the 19th Century the premises has been newly decorated. Lippel family took over the restaurant in 1972.
Oliver Lippel, now owner of the restaurant, has taken over in 2003 from his father, after he has spent his "culinary apprenticeship and journeyman years" in some of the best star restaurants in Germany and Switzerland. His classic cuisine with modern, regional and seasonal influences is known far beyond the borders of Bamberg and also popular. He also managed the so-called Knights' Hall in residential construction (Palas), which is often used for festive occasions such as weddings or festival Foundations.