Placed in the heart of the Region of the Hortênsias, famous for the picturesque color of its local hydrangeas, the town was set up as a small village in 1880, when a wave of Germans and Italians brought their work and habits, architecture, religious creed and characteristic cooking style to colonize the area. More than a hundred years later, Gramado is a major touristic hub, known as one of Brazil’s best business/pleasure destination. Visitors are surprised with its beauty, weather and colour, in a warm touristic atmosphere surrounded by lush forests and hills. With its fame and prestige, the city attracts millions of visitors each year, generating high satisfaction among its visitors.


Gramado lies atop of hills between 700 m (2,297 ft) and 1,000 m (3,280 ft) above sea level. During summer the climate is tropical and mild, however the winters are generally considered cool by Brazilian standards. A typical thermal feature of the region is a sudden change of temperature during the day. Street thermometers will often fall from sunny afternoons to starry nights at a difference of 10º to 18º C (50º to 64º F) a few hours after sunset. In 2015, the first week of October had an average temperature of 11º C (51,8 F). The maximum recorded was 17° C (62,6 F) and the minimum was 7° C (44,6 F).​


The city boasts a mix of European gastronomy (Swiss fondue, German schnitzels and Italian pasta dishes) to the traditional “gaúcho” food – the famou ;churrasco (local style barbecue) and galeto (roast chicken). Sophisticated Thai fusion cuisine is also available, plus the usual mix of pizza, pasta and soup. Another main attraction is the "café colonial" – a brunch-style meal featuring dozens of food varieties that will not only fill the table but also the eyes.