In 1888, Jan Janeček had a hotel with an eclectic facade built in the town square in place of two Classicist houses built in 1814 which had later burnt down. Although many changes were made to the building, which was also extended at the rear, its historicized frontage was not modernized until the mid-1930s. In 1933, the owner at the time, Čeněk Svoboda, probably hoping to match the Functionalist reconstruction of the nearby Gold Star Hotel (01-84), applied for building permission to add a second storey to the hotel and modify its frontage. He submitted plans featuring a Functionalist design by the company Krč – Novotný – Tomka, which had also carried out designs for the aforementioned Gold Star Hotel.
Due to objections by the State Heritage Institute, the design project had to be reworked. However, the new version, carried out by the Prague architect F. J. Leopold, a specialist in designing hotels and pubs, likewise did not meet the heritage institute's approval. They insisted on a partial lowering and modification of the facade overlooking the town square. They also insisted that the partitioning of the facade should be horizontal instead of vertical, as the original partitioning reached up to the flag staffs and would have caused the building to tower over the nearby built-up area. The infill above the windows was also not approved as it would have accentuated the verticality of the building. Changes to the design and the actual construction of the building were carried out by Jan Lustyk, an architect and builder with offices in Ústí nad Orlicí and Litvínov. In spite of basically adhering to Leopold's original layout, he modified and refined the facade, with its slightly embedded central axis reaching up to the attic, and separated the cornices into sections of differing heights. He added large lettering (some illuminated) to the light tones of the rendering, thus embracing the modern building style concept.
The ground floor contained a café with three expansive, glazed apertures looking out onto the square, and the hotel rooms and utility areas were located in the upper storeys. The complex included garages, and fuel was available at a nearby petrol station.
During the second half of the 20th century, the space in front of the hotel was used as a bus station, and there was a canteen and snack bar on the ground floor of the building.