In the year 1899 Archduchess Klothilde Maria Amalie, daughter-in-law of Austrian Emperor and Hungarian King Franz Joseph, wife of Archduke Joseph purchased the two most important lots in the city center from the Metropolitan Board of Works. Distinguished architects Kálmán Giergl and Flóris Korb were commissioned to design and construct the four-floored neo-baroque twin palaces in 1889-99. The unique historical building stands on the corner of Váci Street since 1900, being the first one to feature an elevator in Hungary.
Cheesy shops were opened downstairs, offices for rent operated on the 1st floor, the 2nd 3rd and 4th floors made rooms for luxurious residences. The attic was home to the Korb & Giergl Architect Office and a photographic studio.
During the siege of Budapest, in 1945 the building was badly damaged. Assumedly the ante-room from Ferenciek square and the main staircase were completely destroyed and the passage also suffered a great deal of destruction. In 1950 the building interior was entirely redone according to the blueprints of Károly Lux and László Szőke in order to accommodate its new inhabitant, the Hungarian Post Office. Around 1960 the facades were renovated.
In the sixties they established a system of the so called "dollar shops", mainly to encourage Hungarian diplomats to spend their currencies within the frontiers.
In autumn of 2003 Mérték Architectural Studio Ltd. got the assignment from Graziano Beghelli, who purchased the Klotild Development Ltd, to design the reconstruction and renovation of Klotild Palaces building II. The project took 8 years to finish, Market Zrt. finished the job from 2009.
The unique historical building forms a perfect address for one of Hungary's most iconic boutique hotels, opened in June 2012. Located in the heart of Budapest amongst the main tourist attractions and fashion shops, the Buddha-Bar Hotel Budapest Klotild Palace, operated by Mellow Mood Hotels Group and owned by Sameer Hamdan and Zuhair Awad, is the ideal base from which to explore one of the most vibrant cities in Central-Eastern Europe.