The name Ciragan comes from the word “cerag” which means torch in Persian. The area in which the Palace is located was called Ceragan because of the famous Ottoman parties which were held in tulip gardens with torches. The palace was built during the reign of Abdulmecit and was designed by the Armenian architect Serkis Balyan. The building was constructed using the financial loans that were obtained for restructuring the water system of Istanbul and the construction of a new railway. The construction took 12 years. This is the last palace built by the Ottoman Empire for the royal family.
Unfortunately the main building was destroyed by fire on 6th of January 1910. Only the exterior walls remained from the structure. The main building has been renovated and with the addition of a modern hotel building the site has been converted to a fine hotel. The other surviving buildings in the complex are being used as schools.