Built as a high-class hotel on the commission of the wealthy Armenian merchant Mikael Aramyants, it was opened in 1915 as Hôtel Majestic (Georgian: სასტუმრო მაჟესტიკი).

Heavily damaged by fire during the December 1991–January 1992 coup d'etat, a prelude to the Georgian Civil War, it was reconstructed from 1995 to 2002.

[3] The hotel, intended to become the best in Tbilisi, then capital of the Russian-ruled Georgia and the larger Caucasus region, was designed by Aleksandr Ozerov in 1911 and later remodeled by Gabriel Ter-Mikelov at the behest of Mikael Aramyants.

In February 1939, the refurbished building was restored to its original function as Hotel Tbilisi run by the state-owned travel agency Intourist.

Its lavish façades retain their original design, utilizing elements of the Renaissance and Baroque architecture, such as rustification, massive semi-circular and flat pilasters with Corinthian capitals, and triangular and circular pediments rested upon stone brackets.