Up until 1894 there were two gristmills, two stores, a bakery and a house where the parish clerk’s family lived, as well as a schoolhouse on the south side of Bøvre (Fossbergom). A government decision to reduce the land areas belonging to the vicarages, led to the sale of Ulstad and its purchase by four men in 1894. The property was divided into four farms: Ulstad nødre (north), Ulstad midtre (middle), Ulstad søre (south) and Ulstad nedre søre (lower, south). The areas were in turn sold as farmsteads and were run as farms right up to WWII. The national highway Rv. 15 functioned practically as an old cow trail from Gjeisar to Prestbrua – not only cars travelled along the route, but cattle on their way to and from summer grazing pastures higher up in the mountains did as well. At about the same time, three of the farm owners started the tourist business at Fossbergom. In 1994, these companies celebrated their 100-year anniversary. A special booklet about Fossbergom was issued in connection with the centenary celebrations.

Fossberg Hotel opened prior to 1900
After selling three of the four farms that Ulstad was split up into, John Haugen still had the farm at Ulstad midtre, which he named Fossberg. Operations at Fossberg Hotel started prior to 1900, because that is the year he applies for a license to serve home-made beer; two years later he is granted a license to serve beer and wine. The hotel had a kitchen and two living rooms, two small bedrooms and a hallway on the first floor, and 7 bedrooms on the second floor. On the third floor there was a dancing hall, a bedroom and an attic room. Ola P. Lund from Sjåk bought Fossberg in 1926, and up until 1946 the main source of income at the site came from farming, in addition to some income generated from running the cafeteria and long-term room rental. After 1946 the hotel was once again in the hotel business, and could now accommodate up to 12 guests at a time. The first renovation work to the main house started in 1953, and step-by-step Fossberg has developed into the modern hotel it is today.