The building was originally two separate warehouses which were commissioned in 1781 for the newly chartered trading company Østersøisk-Guineiske Handelskompagni which was established in 1781 and superseded by Pingel, Meyer, Prætorius & Co. The buildings were completed in 1787 to designs by engineering officer Ernst Peymann. They were taken over by the Crown in 1788 and then came into use as grainaries. The two buildings were connected in 1885, creating the long building seen today. The building stored up to 30,000 barrels of grain.

The building was acquired by private investors in 1973 for redevelopment as a hotel. The architects Flemming Hertz and Ole Ramsgaard Thomsen undertook the conversion which was rewarded with an Nostra diploma from the European Union. The hotel opened its foors in January 1978. It was refurbished in 2004.