The first mention of Oeding Castle is in a deed of sale from 1353, when the squire Johann von Bermentfelde acquired the fortress together with the mill and all the buildings. Only thirteen years later, the Prince-Bishop of Florence destroyed all the walls. As a result, the castle was rebuilt as early as 1371 under Johann von Gemen and also divided into main and outer castles. The foundation stone for the town of Oeding was laid with the subsequent settlement of the castle. In the following centuries, the castle changed hands again several times. After it was used as a mission station for Dutch Catholics under Prince-Bishop Bernhard von Galen, who then had its own church built, the castle was sold again at the beginning of the 19th century. This led to its demolition in 1854. Only the 15th century castle tower and parts of the historic castle vault remained. In 1979, the remains of the fortifications were completely restored and integrated into a new hotel building.
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