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 hotel. The other surviving buildings in the complex are being used as schools.

The best sites along the Bosphorus and the Golden Horn had been reserved for the palaces and mansions of the sultans or important personalities. Most of these, however, have disappeared in time. One of these, the large Ciragan Palace, burned down in 1910.

The Ciragan Palace, replacing an earlier wooden palace, had been built in 1871 for Sultan Abdulaziz by court architect Serkis Balyan. The construction took four years and cost four million gold pieces.

The ceilings and the interior of the Ciragan Palace partitions were made of wood, the walls were covered by marble. The columns were superior examples of stonemasonry. The palace was lavishly decorated with rare carpets, gilded pieces and furniture inlaid with mother-of-pearl.

Like other palaces on the shores of the Bosphorus, the Ciragan Palace had been the venue of various important meetings. Its facades were decorated with colored marbles, it had monumental gates, and it was connected to the Yildiz Palace on the slopes behind it with a bridge.

On the landside it was surrounded by high walls. After remaining in ruins for many years, the Ciragan Palace has been renovated and turned into a 5-star seashore hotel with several new additions.
 

Open everyday, it's a hotel now (Ciragan Palace Kempinski)