The palace in Likani was built in 1895 on the bank of Kura river for Grand Duke Nikolai Mikhailovich Romanov.
It was constructed in the Moorish style, based on a design by architect Leontiy Benois.
The construction lasted three years, building work was supervised by Leopold Bielefeld, a Georgian architect of German origin.
To provide electric lighting for the palace, the first hydroelectric power station in the Russian Empire was built on the Kura river in 1898.
The palace, notable for its Moorish style, is also significant for being pictured in 1912 by the pioneer of Russion photography, Sergey Mikhailovich Prokudin-Gorsky.