House No. 26 on the even side of Leontievsky Lane is a remnant of the estate of the Princes Shakhovskys, dating back to the late 18th and early 19th centuries. The main house of the estate faced Tverskaya Street, while the service buildings were located in the lane. One of these buildings, a two-story structure depicted on the 1802 plan, became the basis for the current house.

In 1876, architect N. Talman reconstructed the house, giving it eclectic decor and uniting it into a single complex that shaped the block in the form of the letter P. The main part of the complex faced Tverskaya, while the two bases faced Leontievsky and Voznesensky lanes. Since the 1880s, the house belonged to the famous banker Lazar Solomonovich Polyakov. Before the revolution, it housed the famous furnished rooms "Louvre" and "Madrid." The more luxurious "Louvre" was located on the part of the house facing Tverskaya, with an entrance next to the governor-general's residence, while the simpler "Madrid" faced the lane. After the expansion of Tverskaya Street in the 1940s, "Louvre" was cut off, and only part of "Madrid" remained on Leontievsky Lane. To this day, the monogram "M" remains on the attic above the entrance, supported by two caryatids.

The house had a corridor system with complex transitions allowing passage from "Louvre" to "Madrid" and vice versa without going outside. These furnished rooms were popular among artists and theatrical figures. "Louvre" hosted visiting celebrities and soloists from Moscow theaters, while "Madrid" was frequented by playwrights and lesser-known artists. Tatiana Lvovna Shchepkina-Kupernik, who lived in "Madrid" for many years after moving to Moscow, described the rooms. She acted at Korsh's theater and wrote plays for theaters, including the Maly Theater, where she found success. At that time, Lydia Yavorskaya lived in "Louvre," with whom Shchepkina-Kupernik became friends for life. Lydia Borisovna Yavorskaya was originally from Kyiv, moved to Petersburg at 18 to study acting, and later studied in Paris. In 1893, she debuted in Revel and soon conquered Moscow with her role as Marguerite Gautier in "Camille" at Korsh's theater. Critics attributed her success in Moscow not so much to her acting as to her extravagant behavior, which differed from conventional notions of a Russian actress. She shocked the audience with outfits that showcased her body, her boldness, her husky voice, and the absence of "melody in gestures." A.P. Chekhov, Lika Mizinova, singer Varvara Eberle, editor of the magazine "Russian Thought" Goltsov, and writer Potapenko often visited Yavorskaya and Shchepkina-Kupernik at the hotel.

In the 1990s, the remaining "Madrid" was completely reconstructed for administrative purposes, preserving only the facade of the famous hotel. It is in this hotel that the action of B. Akunin's novel "The Whole World is a Theater" takes place.