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The Garden Court in the Palace Hotel. The Palace Hotel is a landmark historic hotel in San Francisco, California, located at the SW corner of Market and New Montgomery streets. Also referred to as the “New” Palace Hotel to distinguish it from the original 1875 Palace Hotel (which had been demolished after being gutted by the fire caused by the 1906 San Francisco earthquake) that it was built to replace, the present structure opened in December 1909, on the site of its razed predecessor.