Erich Honecker was a regular at the former “Guest House of the Council of Ministers and Politburo of the GDR” when it was opened in 1968 by SED head of state Walter Ulbricht. In addition to Ulbricht, successor Erich Honecker also made guest appearances at least twice a year during the Leipziger Messe. Other GDR figures and foreign guests came, too. In 1983, a billion dollar loan for the almost bankrupt GDR was negotiated by Honecker and Bavarian Prime Minister Franz Josef Strauss in a bomb-proof bunker under the house.
In 1995, Treuhand sold the property and the building to the Hamburg restaurant chain Block, which wanted to create a luxury hotel here. A fire in 1999 caused great damage inside. In 2012, an investor took over the hotel from the Block group. The property has been a listed building since 2013. In 2016 the building changed hands again. The new investor planned to demolish the building which was rejected due to its listed status.