Originally constructed as a Muslim palace in the Islamic medieval stage of the Balearic Islands, the 12th century building is one of Palmas oldest. Archaeological studies tells a rich history of least seven stages of the building, stretching over nearly thousand years.

After the Christian conquest in Mallorca in 1229, the building functioned as a fortification that included a neighbouring house, before it was ordered to be burnt down by King Alfonso III of Aragón at the end of the 13th century. The site remained in ruins for at least 100 years and later became private homes for noble Majorcan families. The palace was re-built in a Gothic style in the mid-15th century, and later reformed as a baroque style palace in the 17th century.

At one stage of the history, the building seems to have been linked together with the Sant Jaime church, that is today a neighbour of Nobis Hotel Palma.

The original Muslim palace from medieval times was organized around two symmetrical interior patios that has been maintained as a guideline to the present. In the reception of Nobis Hotel Palma, guests can admire a wooden Alfarje - a panelled ceiling with a decorative element of the Arabic calligraphy Nashk writing, intended to protect its inhabitants - that miraculously survived the 13th century fire and all later stages of constructions.