Marie of Edinburgh, the wife of Ferdinand I of Romania, visited Balchik in 1921 and liked the location of the summer residence, ordering the vineyards, gardens and water mills of local citizens to be bought so a palace could be constructed at their place. Balkan and Oriental motives were used in the construction of the palace that was carried out by Italian architects Augustino and Americo, while a florist was hired from Switzerland to arrange the park. The main building's extravagant minaret coexists with a Christian chapel, perfectly illustrating the queen's Bahá'í beliefs.
Today many of the former royal villas and other buildings of the complex are reorganized inside and used to accommodate tourists. Some of the older Bulgarian water mills have also been preserved and reconstructed as restaurants or tourist villas.