The hotel was built from 1898 to 1899 according to the design of architects Alexander Bernardazzi and Adolf Minkus and at that time was one of the most luxurious hotels in Odessa. It became the first 4-storey hotel in Odessa.
Coming to Odessa, many famous people stayed at this hotel, falling in love with it at first sight, seeing its external beauty, and finally giving preference to it, appreciating its internal beauty. Famous artists of the 19th-20th centuries visited here: the writer I.A. Bunin, French writer Henri Barbusse, American writers T. Dreiser and D. Aldridge, German writer W. Bredel and other extraordinary personalities. Many politicians and famous people have stayed at the Krasnaya Hotel.