The hotel was originally constructed as a residence, the 'Dullawe Walauwa', designed by Devendra Mulachariya on instructions from King Sri Vickrama Rajasinha. Soon after the British defeated the Kandyan Kingdom in 1815, it was adapted as a mansion for the Governor of Ceylon, with adjoining buildings constructed to house British troops. The building was subsequently converted into the barracks for the Ceylon Rifle Regiment. In 1840 it was used as a hostel, known as Malabar House, due to its location on Malabar Street (now known as D S Senanayake Veediya). It was then operated as a boarding house, known as the Stainton Hotel, managed by James Stainton. After his death in 1863 his wife continued to run the business until 1869.In 1869 it opened under new management, the Queens Hotel Company, and its name was changed to the Queens Hotel.In 1895 it was acquired by Kandy Hotels Company Limited who undertook extensive enlargements and improvements to the building, in order to make it into a first-class hotel