The palace was built by Sultan Abdulaziz between the years 1863-1867 and designed by Armenian architect Nigokos Balyon, and it is the last sample of its period. Previously there was a beautiful Ottoman garden, ornated by the many kinds of flowers and tulips on the Bosphorus. This was when Ottoman sultans lived in their own buildings rather than living in those of theirs ancestors. The inner walls and the roof were made of wood, and the outer walls were made of colorful marble.

During the Second Constitutional Monarchy, Sultan Mehmet Resat allowed the parliament to hold their meetings in this building. In 1910, the great fire destroyed the palace then the palace served many years as a football stadium for Besiktas J.K. In 1989 the ruined palace was bought by a Japanese Corporation which restored the palace and made a luxury hotel complex. Today, it is also known as Hotel Kempinsky. Moreover, it is the most expensive hotel in Turkey. You can see the palace during the Bosphorus Cruise.

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