Karl Lagerfeld and co. would have made legendary Venice resident Peggy Guggenheim proud last night, so convincingly did they turn the patio of the Hotel Excelsior Lido into a decadent dance club. "It's like a movie set, of a movie I would really want to be in," said Francesco Vezzoli. Jefferson Hack was more concerned with the math: "If just one of these bungalows is a few hundred euros for the day, how much would all of them be? Do you think you get every tenth one free?" Maybe Chanel skimped on the bar: Champagne and wine were the only alcoholic beverages on offer—not that that stopped anyone from imbibing. When Disco Inferno, a cover band that specializes in ABBA hits, took the stage, models by the dozen hit the dance floor, bumping and grinding on men in sequined jackets who were only too happy to be vastly outnumbered.

It was a scene that none who were present will soon forget, but Lagerfeld, as ever, played it cool. Later at dinner, when talk turned to his generous gift to the director of the Peggy Guggenheim Collection—he presented her with a pair of the art patron's original bat-winged shades along with their monogrammed case—he quipped, "What was I going to do with them? I have my own glasses."

— Derek Blasberg