The hotel was commissioned by Ajit Wijesekera of Union Apparel (a garment manufacturer) in 1994, the design of which was a collaboration between Geoffrey Bawa and Milroy Perera. Work on the project commenced in 1996 and was completed in 1998. The hotel suffered damage to sixteen ground floor rooms as a result of the 2004 Boxing Day tsunami but no lives were lost. The hotel was initially managed by Jetwing Hotels until 2008 when it was taken over by Union Resorts, who renovated it and added a reception room/banquet room.