In the 15th century, during the reign of Grand Prince Ivan III, a Gun House was established on part of the territory, which after the fire of 1488 became the Moscow Gun Yard. This yard, subordinate to the Gun Order, was moved to this territory in 1670 and represented a conical tower surrounded by a high wall. In 1739, the yard was relocated, and until 1795, a military warehouse and the Moscow Artillery Depot were located on its site. In 1803-1804, the Gun Yard was dismantled, the hill was leveled, and Rozhdestvenka Street was extended to the present-day Theater Passage. In 1821-1823, the site was acquired by Georgian princes Irakli and Okropir Georgievich, who built new buildings there, including the Church of the Nativity of the Virgin.

In the late 1870s, the site was purchased by textile manufacturer G. I. Khlyudov. At his request, architects V. G. Zalesky and P. P. Skomoroshchenko renovated and expanded the buildings. The modern building facing Theater Passage was constructed in 1889 according to the design of S. S. Eibuschitz and included the building of the Georgian princes. The facade of the four-story house, later raised, is executed in an eclectic style with elements of classical and baroque architecture.

In 1893, L. N. Kekushev built another building for the Khlyudovs at the corner of Rozhdestvenka and Theater Passage. Its cut corner is highlighted by a three-sided bay window with a portal on five floors. In 1934, the house was raised according to the design of S. E. Chernyshev, and in 2001, it was altered according to the design of M. M. Posokhin, preserving the forms of early Moscow modernism. Both buildings are important urban-forming objects.

During the Soviet era, the baths were renamed "Central" and operated until the early 1990s. In 1934, the building was raised by two floors. One of the wings housed the "Russo-Chinese Baths," known as Khlyudov Baths, with prices ranging from 5 kopecks to 10 rubles for a separate room. The interiors of the baths were painted by artist A. A. Tomashko.

In the early 20th century, the Khlyudov income house housed the Moscow branch of the "Russian Society of Shukert and Co," the store "Emil Bodlo and Co," the bookstore of I. Fadeev, the cinema "Express," the restaurant "Yalta," and the bar of the "Three Hills Brewery Society." The Russian Society of Photography enthusiasts included N. E. Zhukovsky, N. A. Umov, and others. The house also housed the Moscow branch of the Russian Technical Society with the "Museum of Labor Assistance," where L. A. Chugaev and others worked. Notable residents included actress M. F. Andreeva and architects L. N. Kekushev and I. V. Zholtovsky.

In 1924-1925, the Moscow Municipal Museum, a predecessor of the Museum of the History of Moscow, was established in the house, led by P. V. Sytyin and P. N. Miller. The Ministry of Transport of the Russian Federation was located at house 1s1. After the baths were closed, the restaurant "Silver Age" and the tavern "Arkadia" opened in their premises.