The hotel was started as a partnership firm in 1965, when its promoters, A. Venkatakrishna Reddy, M. Ramaraghava Reddy and A. Shyamasundara Reddy, with considerable experience in the real estate and hotel business, acquired land measuring approximately 5,000 square metres in Mylapore, a prime locality in the city, to build a hotel with 20 rooms and a restaurant.

In 1969, the promoters established a company under the name 'Savera Hotels Private Limited' to meet the needs of their growing business.

Accessories like the swimming pool were already constructed, an idea which was not common with the hotel industry in the city then.

A completely renovated permit room called Bamboo Bar was shifted from the basement to the ground floor in 1985.

[1] On 31 December 2007, a makeshift dance floor erected above the swimming pool, for the New Year Eve, collapsed killing three persons and injuring two.