This 19th century palace was a royal residence of the rulers of Nepal from 1894 to 1964. In 1964 the late Mr. Ram Shanker Shrestha bought the palace and converted it into a luxury heritage hotel. The facade was kept intact but the interiors were redesigned to give travellers the kind of comfort they'd expect of a world class hotel. The hotel is characterized by exquisite and authentic artifacts.

Some facilities at the hotel include free WIFI connectivity, a swimming pool, 24 hour room service, a spa and a gift shop. Hotel Shanker has a couple of restaurants and bars including a poolside bar. This establishment is within walking distance to Thamel and Durbar Marg - Kathmandu's tourist hubs, making it an ideal base to explore Kathmandu.