Built in the 1840s, the house originally belonged to Prince Mamuka (Makar) Jambakur-Orbeliani, boasting a facade adorned with three wide wooden carved balconies. By 1866, the second floor had transformed into the "Lira" hotel, later renamed "America," with some fashionable shops on the first floor. After Prince Mamuka's death in 1871, the building passed to his son, Konstantin. Until the early 20th century, a hotel, known by various names, including "Boyar Numbers," continued to operate. In 1905, the building became home to the first winter cinema, "Electric Lantern," later known as "Spartak" in the Soviet era. In 1910, Prince Konstantin Jambakur-Orbeliani sold the building to Mikael Aramyants, a prominent Tiflis industrialist. In 1914, the architect Alexander Ozerov designed the luxurious Palace Hôtel, featuring an Art Nouveau facade with Neo-Gothic elements. The white-tiled facade highlighted four ledges, the central ones adorned with small pyramidal turrets. A wide bay window graced the center, while the second floor boasted openwork forged balconies, and the third floor was crafted from stone. Equipped with modern amenities like an elevator, electric lighting, and central heating, the hotel's suites even had bathrooms. The hotel's pride was a two-story restaurant in Gothic style. Additionally, a tourist bureau operated from the hotel, arranging daily car tours along the Georgian Military Highway. Despite opening during the First World War, the hotel thrived until 1918. However, in 1918, a severe fire engulfed the hotel, leaving only the facade standing. Between 1923 and 1924, architect Mikhail Abesalomov led the restoration efforts. During Soviet times, the Ministry of Culture of the GSSR occupied the building, later housing the Tbilisi Theater Institute, which is now the Sh. Rustaveli Theater and Cinema University.