In 1964 A.D., Late Mr. Ram Shanker Shrestha bought this Palace and converted into the hotel as we know today. Operations were started with a 23 rooms and gradually expanded to its full capacity.

He received (posthumously) the Order of the Gorkha Dakshina Bahu (an order of knighthood of Nepal. It is one of the highest honors given for the distinguished contribution to the country traditionally by the King and now the President.)