Coburg Palace was built between 1840 and 1845 as a city residence for the dukes of Saxe-Coburg and Gotha. Designed by architect Karl Schleps who died in 1840, the building was executed posthumously by master builder Adolph Korompay, who used sections of the razed Vienna city wall for the foundations.

The designers of the conversion co-operated closely with the planning authorities for listed buildings. Their design incorporated large sections of the fabric of the building, some of which were up to 600 years old. The result is a successful synthesis of old and new.