Historical background courtesy Mr. Sohail Ansari
This hotel has an interesting history. It was originally established as Mama’s Palace after World War I. A Parsi entrepreneur, Mama, owned it. He later went into financial difficulties and owing to debt lost the property to the Punjab National Bank which could not find any hotel operators willing to occupy and run it because of a lack of guest rooms.
However, in the early 1930’s Sidney Marder, the operator of the Killarney Hotel near the railway station in Karachi, approached the bank and following negotiations convinced them to erect an annex of guest rooms behind the building.
The Killarney Hotel, thus, moved to this new premises in 1933-34. It was renamed as the Killarney Hotel – Marder’s Palace. In the years that followed, the property was simply known as the Palace Hotel. I am not sure exactly when the name altered.
Palace Hotel’s distinctive cup and saucer dates to around 1953 when Karachi was still the original capital of Pakistan.
In the 1950s, nightclubs were popular in Karachi and many of those were run by the major hotels. The Palace Hotel had the Le Gourmet nightclub, where jazz musicians from Karachi and abroad used to play. International travelers, foreign delegates and reporters, frequented the hotel in that era.
Palace Hotel was ranked as the third best hotel in Karachi in the 1960s. Ultimately this hotel was razed for the construction of the Sheraton Hotel, which opened in 1982.