Both streets whose common corner is adorned by the hotel had been amongst the primary thoroughfares of the first ever European city to have been built according to architects' designs. They were planned already during the foundation of the New Town of Prague by Charles IV in 1348. Famous artists including Carl Maria von Weber, Rainer Maria Rilke and Franz Kafka, were profoundly influenced by this area, as can be seen in their works of art. There is no other comparable hotel in Prague, which could boast such a rich and exciting history of the building it occupies.
The area of land where the hotel was later raised is first mentioned in historic records in 1378. It was then a residential house of an aristocrat, a subject of king Wenceslas IV.