The palace was built in the 18th century by Mahmoud Muharram, a well-known merchant at that time.

In the early 19th century Mohamed Ali acquired it and turned it to a guest-house hence came the word (Musafirkhana). The palace's design resembles that of Bait El-Sihaymi but with grander dimensions.

Unfortunately the palace was subject to a great fire 5 years ago and today there is nothing left but ruins (See above image). There are plans to build and restore it but authorities did not start it yet.