This is the 7636th most frequent German word.
gstaad
"Gstaad" is not a German word; it is the name of a resort town in Switzerland.
In this sentence, 'Gstaad' is used as the proper noun representing a location, specifically a town in Switzerland.
Gstaad ist ein bekanntes Reiseziel in den Schweizer Alpen.
Gstaad is a famous travel destination in the Swiss Alps.
Here, 'Gstaad' is used in the context of a destination where the described action takes place.
Wir planen einen Urlaub in Gstaad nächstes Jahr zu verbringen.
We are planning to spend a vacation in Gstaad next year.
In this case, 'Gstaad' is highlighting the reputation of this specific location known for its luxury.