Krishnashamsher, the sister-in-law of the then King Tribhuvan and son of Mr. 3 Chandrashamsher, built Sheetal Niwas (present President's office) after the 1990 earthquake in British design. Sheetal Niwas was also known as the 'Queen of Palaces of Kathmandu'. Because, there were no other buildings of that type built in the British style in Nepal.

Built in the British style, this building was given to the government by Krishna Shamsher while he was going into exile. According to novelist Diamondshamsher, before he went abroad due to internal politics, Krishnashamsher handed over the building to the government after suggesting that it be used for entertaining special guests. Krishna Shamsher, who has a generous heart, built a cool residence building in British design after the old building was damaged by the earthquake. He brought a designer from Britain to build the building. 

The building of Sheetal Niwas was seen as the best building in Asia at that time . But after coming under government ownership, the building gradually became like a dump for cars. When Krishna Shamsher once came to Kathmandu from exile, he provided 5 lakh rupees for the further maintenance of the building. Seeing that the building was dilapidated without even repairing it, he helped the government financially. 

After the government got it, the Indian embassy was sitting in Sheetal Niwas. After the embassy building was built in Lainchaur, the embassy moved from Sheetal Niwas. Then there was the hospitality department. After seeing the possibility of giving Sheetal Niwas for other purposes, the Ministry of Foreign Affairs kept it during the Panchayat period. The ministry was established after the two power centers of the panchayat had different views on the use of Sheetal Niwas. In 2045, the Ministry of Foreign Affairs was housed in that building and moved to its own building, Singh Darbar.

British Queen Elizabeth II, Pakistan's then President Ayub Khan and other leaders were given hospitality in the same building as special guests. The guests invited to King Birendra's wedding and coronation were kept here . The food for the guests kept there was served in salti overai . 

 The police training center was located in one part of the land of Sheetal Niwas, while the other part was made as a guest house. Due to the fact that Sheetal Niwas spread over 226 ropani on both sides could not be maintained as per the requirement, the discussion of renting it to a private company has been going on for a decade . This topic was revived in the 50s . The discussion started when the government thought that it would be suitable to give a cool residence to Hilton Hotel, which has its head office in the US and has more than 450 five-star hotels worldwide. 

After Hilton did not get land in the prime location of Kathmandu, investors were excited when some government officials said that Sheetal Niwas can be given to operate the hotel. They were looking for land for 6 months. Nepali and Indian businessmen wanted to run the hotel under the management of Hilton. Initially, after the government gave a Nepal food warehouse at Thapathali to Hilton, the supply ministry and the administrators of food took a stand not to give it. 

Hilton asked for the land of Bhrikutimandap, but after saying that it was not available on that day, he chose around Singha Durbar . Government officials at that time said that Sheetal Niwas was built after not finding vacant land there. Even though the government said that it would give land in Kirtipur area, Hilton did not agree. 

After the Nepal investment meeting held some time ago, the government officials said that they are bound to allow the hotel to be opened in a joint venture after making a special commitment for foreign investment. After the political change of 2046, the government policy was to bring in foreign investment due to the economic liberalization of the country.

In Nepal at that time only Solti and Annapurna hotels were operating under international management, it was expected that Hilton's presence would add another good hotel . But the debate was going on whether Sheetal Niwas is suitable for hotel operation. The news prepared by journalist Narayan Wagle under the title "Historical Sheetal House is now in the hands of a businessman" was published on the front page of Kantipur Daily on June 8, 2050.