It was apparently built in the last quarter of the sixteenth century by Khusref Kenkhuda, a property owner in Thessaloniki who probably served as Kehaya (administrator) for the Vizier Sokolou Mehmet Pasha.
It functioned as a double bathhouse with separate compartments for men and women, with the usual layout of rooms.
The building ceased to function as public baths following the annexation of Thessaloniki by the kingdom of Greece in 1912, unlike the other hamams in the city which remained open.
For a large period it functioned as a concert hall in which many Greek musicians and singers performed.
Today it remains in private ownership and is used as a café bar and restaurant with the name "Aegle Yeni Hamam".