Influenced by the Art Nouveau style, the red brick building was designed by Anton Rosen and completed in 1910.

Assisted by his Hungarian architects, he converted the Marble Garden into the "Ambassadeur", turning the hotel into a popular entertainment venue.

[6] The Palace Hotel building is considered one of Rosen's most important works and shows clear evidence of his appreciation of Jugendstil.

[7] He received the commission shortly after completing the Løvenborg building on nearby Vesterbrogade, the first example of the style in Denmark.

The copper-roofed tower is 65 metres (213 ft) high and decorated with mosaics by the painter Johannes Kragh on all four sides, symbolizing morning, day, evening and night.

Anton Rosen designed the entire block between the City Hall Square and Mikkel Bryggers Gade where the Grand Cinema is now located.

[12] The hotel has been used as a location in the films Dorte (1951), Hendes store aften (1954), Mariannes bryllup (1958) and Een blandt mange (1961).