The "Grand Hotel" was founded in 1774, when state peasant Yakov Andreyevich Koshelev, who became a merchant from Penza, purchased the estate from the honorable citizen Matryona Nikolaevna Kazitsyna and began construction of a three-story building for the hotel.

In the photograph of the middle block from above, the empty space in front of the nine-story building is clearly visible. Previously, houses stood along the street, and there was also a fountain square.