The building had been the largest inn within city limits since the 16th century. In the 18th century it grew into a "palais" with wonderfully designed rooms, suites and banquet halls. In 1852 the building was taken over by Ferdinand Sonnhammer, who gradually change the "Palais" into an upper-class hotel, and gave it the name "Palais Erzherzog Johann", after the well-liked Styrian archduke.