The Montreux Palace was built to plans by Eugène Jost in 1905 and 1906. It was inaugurated on March 19, 1906. During World War I, it was used as a hospital for French and British soldiers and on July 20, 1936, the Montreux Convention Regarding the Regime of the Straits, regulating the maritime traffic in the Bosporus and Dardanelles Straits, was signed in the Montreux Palace. The Montreux Convention is unchanged since its adoption and still followed.
The hotel has seen many famous guests over time: to name just a few, Richard Strauss composed "Vier Letzte Lieder" here in 1948, author Vladimir Nabokov lived in the hotel for 16 years, from 1961 until 1977, and Michael Jackson stayed here while recording the album "Blood on the Dance Floor" in 1997.
The Montreux Palace is listed as a cultural property of national importance.