The Palace Hotel was built during the time of the Austro-Hungarian Empire as a tourist facility of the highest category. Along with Grado, Venetian Lido and Opatija, Portorož was a very fashionable seaside resort and health spa at the Adriatic Sea. At its opening in 1910, the Palace Hotel, after the Excelsior Hotel in Venice, was the the largest hotel on the Adriatic Sea.
In 1983, the hotel was declared a cultural monument (the ground floor, the stairway, the terrace in the central part of the hotel, and the southern, eastern and western façades) by a municipal decree. In 2005, the Restoration Centre of the Institute for the Protection of Cultural Heritage of Slovenia launched a conservation & restoration project according to which specific parts of the hotel (stained glass windows, chandeliers, wainscots and metal balusters) were renovated.
After the municipal decree declared the hotel a cultural monument in 1983, the surrounding park was declared a man-made landscape monument and its layout has been preserved as an element of the spatial concept and a particular facet of the architecture.
The historic part of the park was renovated in such a way as to preserve as much as possible of its original appearance while still taking into account the needs of the contemporary lifestyle. The restoration work was supervised by the Restoration Centre of the Institute for the Protection of Cultural Heritage of Slovenia, Ljubljana. During the renovation of the hotel, a total of 200 people participated in various stages of the restoration & conservation work.