In the late 1980s, La Fortuna in San Carlos began emerging as a major tourist destination, leading to many tour operators being established. Among the early entrepreneurs were the Miranda Castro brothers. In May 1999, they opened Volcano Lodge with just 20 rooms.
Due to its success, the Castro family soon focused entirely on Volcano Lodge, letting go of tour operations and doubling the number of rooms by 2003. By 2005, Volcano Lodge had grown to 70 rooms, and added a restaurant, a swimming pool, and a jacuzzi. The property also developed stunning gardens and landscaping to reflect the natural beauty of Arenal Volcano and Costa Rica’s Northern Zone. In 2008, the name was changed to Volcano Lodge Gardens.