The Merit Halki Palas Hotel is on the hillside above the large bay that indents the northwestern shore of the island. The original hotel on this site was built in the years 1852-62, most of its clients being the parents of students at the Greek Commercial School. The hotel was destroyed by fire in 1991, but it was rebuilt in 1992 in its original elegant 19th century style, but with the addition of modern conveniences such as a swimming pool and gymnasium. The Halki Palas is ideally situated for those who would like to explore Heybeliada on foot, particularly along the pine-scented roads in the uninhabited southwestern end of the island.
