The Lodge was created by a local farmer and a chef who saw potential for a simple and friendly guesthouse in Karatu. They approached the government for a loan and their application was approved. Soon after this 32-room lodge, close to the Ngorongoro Conservation Area, was built.

Bougainvillea lodge has strong community links and some of the profits go towards helping the local community. All of the staff are originally from the Ethiopian Highlands (they belong to the Iraqw tribe), but have been living in Karatu for some time.

The public area building houses the reception, lounge, bar, gift shop and dining rooms. Other facilities include a swimming pool, internet café, a small business centre, curio shop / gift shop, cultural visits to neighbouring villages.