The Pera Palas was designed by the French-Turkish architect Alexander Vallaury (1850-1921) in rococo style.
The construction started in May 1881, and the hotel was opened in October 1891. The "Compagnie Internationale dés Wagons et des Grands Express Européens" built the hotel to accommodate guests arriving in Sirkeci Terminal from Paris on the Orient Express. The symbols of the Pera Palas and the Orient Express are the same.
The Pera Palas lived through the Ottoman decline, the founding of the Republic, two world wars and changing political, social and economic conditions.
After World War I, occupying forces used the Pera Palas as their headquarters. Following the liberation of Istanbul by the Turkish nationalist movement under Mustafa Kemal Atatürk in 1922, the British gave "the key to Istanbul" back to Celal Bayar in this hotel, where Ysmet Ynönü stayed during the armistice talks.
Famous guests stayed in the hotel: Mustafa Kemal Ataturk, Agatha Christie, King George V of England, Kaiser Wilhelm II of Germany, Emperor Franz Joseph of Austria-Hungary and Czar Nicholas II of Russia, General Harrington, Greta Garbo’dan, Shah Ryza Pehlevi, King Edward VIII, Jackeline Kennedy,
Ismet Inönü, Celal Bayar, Adnan Menderes, Fahri Korutürk, King Zog I of Albania, Shah Reza Pahlavi of Iran, King Edward VIII of England, King Ferdinand I of Bulgaria, King Carol I of Romania, President Tito of Yugoslavia and President Giscard d’Estaing of France, Franz Von Papen, Mata Hari, Yehudi Menuhin, Jacqueline Kennedy, Rita Hayworth and Zsa Zsa Gabor.
In 1915, Petros Bodosaki, a windmill owner of Greek ethnicity, visited the hotel. As he was turned away due to his poor appearance, he got angry enough to buy the hotel. Bodosaki turned over the management to his son Hadji Thoma Anastasiadis in October 1919. Due to his tax debt, the hotel was then auctioned and the state took up the management in 1923. The Pera Palas became functional again.
After 1923, Misbah Muhayyes, who gave much to Mustafa Kemal Atatürk during the Syrian campaign, received a letter of gratitude from Atatürk, who, upon Muhayyes’s wish, honored him with Turkish citizenship and also handed over the management of the hotel. Muhayyes' will determined that the income of the enterprise be divided between humanitarian foundations.
In 1963, trustees left the management entirely to these organizations after forming the Istanbul Hotel Management, Tourism and Trading Company.