The South Building dates back to the 1850’s, when it was known as Central Hotel. In 1903, the hotel was restructured and renamed Palace Hotel. Reaching six stories, it was the tallest building on Nanjing Road at the time. The building that stands today, featuring a Renaissance style exterior, was completed in 1908 and offered two elevators, the first building in Shanghai to do so. The hotel played a prominent role in local history over the coming decades. It was occupied by the Japanese army during World War II, and was used by the Municipal Construction Department from 1952 to 1965, when it returned to its original function as part of the Peace Hotel.

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