The hotel comprises two early buildings, individually known as Västra/Östra boställshuset ("The Western/Eastern Residence House"), located along the Långa raden ("The long row").

They were built to the design of Nicodemus Tessin the Younger using bricks from several palaces, in Ekolsund, Gripsholm, Nyköping, Eskilstuna, and Svartsjö.

As Charles spent most of his reign on the battlefields, however, neither building was used for the original purpose, serving instead to house the poor and homeless.

Poor and homeless people of Stockholm emerged in great numbers following Sweden's defeat at the Battle of Poltava in 1709, but were considerably decimated by the Black Death, which hit the city the following year.

The buildings were refurbished in 1958–1959 to serve the Swedish Navy administration and the Naval Officers Society (Sjöofficerssällskapet).