The Palace Hotel was erected c. 1902 for Malcolm Redmond after a fire destroyed many of the buildings along the southern side of Childers' main street.

Queensland artist Sam Di Mauro made a 7.7-metre (25 ft) long glass memorial wall that was set into the new building.

The south wing comprised two adjoining buildings; a service building to the west containing a kitchen to the ground floor and former staff accommodation upstairs, linked by a corridor to a ground floor function room and upstairs hotel accommodation.

The Hotel is important in demonstrating the principal characteristics of an early twentieth century country town hotel with its ground floor public rooms, upstairs modest accommodation, service wing, and significant contribution to a country town streetscape.

It is important in exhibiting a range of aesthetic characteristics valued by the community, in particular the fine interiors, including the ground floor public rooms, and the building's significant contribution in form, scale, materials, and details to the architecturally coherent and picturesque Churchill Street streetscape and townscape.