Dutch merchants built a villa on an Island called 'Ponnikkara' in the year 1744. The villa was subsequently extended lush green gardens were landscaped around it and the villa, or palace as it now was became identified with the island itself. It was then called the Bolghatty Palace and became an imortant picnic resort for the Dutch. During the British time, it was converted into Residency. After India's independence Bolghatty Palace became the property of the State and was converted into a hotel.It has 5 large rooms in the main palace and 6 newly built cottages. All rooms have attached bath.