Hotel Palas, located on the main square of Banja Luka, is a symbol of the city on the Vrbas River. The old building of Hotel Palas is protected as a national cultural heritage site. This hotel was built in 1933 during the mandate of the first ban (governor) of the Vrbas Banovina, Svetislav Tisa Milosavljević. It was constructed on the site where the Šeho’s Mosque once stood. This mosque, also known as Sijamija, was built in 1580 and demolished in 1931. As a tribute to the Šeho’s Mosque, a minaret was placed on top of the waqf-owned Hotel Palas. The first owner of Hotel Palas was the Islamic Community Council of Banja Luka. The hotel was designed by Dionis Sunko, an architect from Zagreb.
Visitors had access to a café, beer hall, restaurant, two separate halls, a cinema with over 400 movable seats, 60 guest rooms, an elevator, public bath, sun terrace, and a garage. A little-known fact is that in winter, when there were no tourists, Palas became a hotel for clerks. Rooms were rented at very affordable prices to government employees.
After World War II, Hotel Palas became public property. During the Banja Luka earthquake in 1969, the hotel was severely damaged. All the rooms were destroyed except for one – Room 113. The key to this room was given as a souvenir to Josip Broz Tito during his visit to the devastated Banja Luka.
The hotel was rebuilt after the earthquake, and in 1985, expansion work began. Plans included the construction of new rooms, large halls with various hospitality facilities, a new restaurant, cafés, and banquet halls. Spaces were also designated for shops, souvenir stores, hair salons, and the travel agency Putnik (Traveler), whose name can still be seen on the wall of the old hotel. The expansion aimed to increase the capacity from 180 beds to 600, but construction was halted.
Hotel Palas was an important cultural venue in the city, hosting live music performances, which Banja Luka residents fondly remember.
It is said that Predrag Gojković Cune began his career at Hotel Palas. Since Banja Luka did not have many hotels, many sports teams stayed at this hotel. FC Anderlecht stayed there when FC Borac participated in the UEFA Cup Winners’ Cup.
Older residents of Banja Luka may remember the excellent bartender Emerik Dragojević, who used to say, “I was born in Vela Luka, but I live in Banja Luka”.
After the war, during the privatization process, Hotel Palas transitioned from public to private ownership and was purchased by the company Zepter. Today, the old part of Palas is still in operation, while the extension built in 1985 was demolished. In 2021, the construction of a new section of the hotel was announced, which will be 100 meters high. The project will include a shopping center, conference hall, fitness center, and numerous other facilities. The construction is expected to cost around 150 million BAM.