It was built as Palazzo Carneiro (Maltese: il-Palazz ta' Karnirju)[1] in 1696, and was the residence of Grand Master Marc'Antonio Zondadari in the early 18th century.

In 1784, it was converted into the auberge for the Anglo-Bavarian langue of the Order of Saint John, and remained so until the French occupation of Malta in 1798.

It was subsequently used as a school, a hostel for bombed-out people in World War II, and was also used by a number of government agencies.

[6] The site was rented for 31 scudi per year for the term of his life and that of one other person nominated by him, and thereafter reverted to the common treasury.

[11] In 1725 Grand Master de Vilhena was symbolically given a sword and a hat, known officially as 'stoc' and 'piliet', similar to other heads of European powers by Pope Benedict XIII.

The Grand Master made large ceremonies for this occasion, and embellished Palazzo Carneiro with the finest settings to receive the Papal Legate.

[12] With mutual understanding, Charles Theodore, Elector of Bavaria persuaded George III, of the House of Hanover, to set up a joint Langue of the Order of St John.

[13] In December 1782[3][14] the Elector of Bavaria, through Gaetano Bruno, bought the palazzo for 20,000 scudi and it began to be used by the newly formed Anglo-Bavarian Langue which was instituted by Grand Master Emmanuel de Rohan-Polduc two years later in 1784.

A notable visit to the building took place in 1785 by Count Leopold Reichsgraf von Kollowrat-Krakowsky, the German Grand Prior of Bohemia, who was a well known Freemason.

The secretary of Grand Masters Pinto and de Rohan, Knight Pierre Jean Doublet, who was a freemason, during the French period continued to serve in Malta as a Commissioner.

On 15 June 1915 it opened as the Bavière Hospital, treating British military personnel injured in World War I, and specializing in severe cases in need of surgery, including head and spine injuries.

[12][34] In World War II, the palace was converted into a hostel for people whose homes were destroyed by aerial bombardment.

[6] During his visit to the island, Hoare observed that the coat-of-arms of England and Bavaria were attached on the façade of the building to supposedly symbolise the union.