[1] The hotel was designed by the German Jewish architect Benjamin Günsberg and was built between 1947 and 1949 by Cyprus Hotels Limited at a cost of approx £240,000 Cyprus pounds on what was then called King Edward VII Street, since 1962 Markos Drakos Avenue.

The hotel opened on 8 October 1949 in the presence of British Governor Sir Andrew Wright and Vice Mayor of Nicosia George Poulios.

Following the announcement of the truce it fell within the boundaries of the UN Buffer Zone and from 1974 to 2019 served as the headquarters for Sector 2 United Nations Roulement Regiment (URR) part of UNFICYP.

[7][8] A 2017 Strategic Review Team from United Nations Headquarters found that due to outdated health and safety measures, the upper floors of the building would have to be vacated by UN forces.

It is also used as the venue for cultural events aiming at bringing the two communities closer together as well as for meetings of general interest.