On the place where hotel now stands there used to be (until 22nd April 1836) the house of a gingerbread-maker named Mrs. Saalová. One day, however, a fire broke out in the house and soon spread to the other houses on the south side of Žižka Square and destroyed them. The fire was the beginning of the history of the future inn. The burned and destroyed place was taken over by the gingerbread-maker’s husband, Augustin Just from Hostinné. He established a new inn with one floor. It was available to traders who travelled from nearby places to the regular markets in the square.

The reputation of Hamburg hotel was supported mainly by the hall touching the first and second floor of the building. There were a lot of lectures, theatre performances, balls and other types of entertainment. In 1892 even Antonín Dvořák sat down at the piano. Jaroslav Vrchlický, a popular translator, poet and author of the timeless classic “Night at Karlštejn” also liked the hotel and held his lectures there.