Palais Schaumburg were formed in Hamburg by Holger Hiller (who had already published a solo single and EP) and Swiss keyboardist Thomas Fehlmann. The band debuted with the singles Macht Mich Glucklich Wie Nie, Telephon, Rote Lichter and Wir Bauen Eine Neue Stadt, mostly compiled on Das Single Kabinet. Their style was a bizarre kind of dance music. Hiller left after their debut album, Palais Schaumburg (Phonogram, 1981). Fehlmann led the band through two more albums, Lupa (1982) and Parlez Von Schaumburg (1984).