Officially opened in June 2000, The Grand Palace Hotel was immediately hailed as a reflection of "the whole philosophical and psychological shift [in Riga] from what used to be to what could be". The conversion from a dilapidated heritage building into a luxury boutique hotel required rigorous space planning to achieve commercial viability and an efficient building form. An entirely new wing was built creating one side of a new glazed courtyard which accommodated a restaurant, while back–of–house was planned to optimise limited space while supporting the highest standard of service.
The whole structure needed to be stabilized and new concrete floors added on top of the original timber beams. The roof was also raised to add an attic storey. The construction project was managed in London working closely with local architects.