According to the archives, King Boris III made his first trip to the village of Banya, Plovdiv province, in 1925. He stayed at the villa of a friend of his –industrialist Velizar Bagarov. The reason for the visit were health problems. The relief he obtained for his ailment, convinced him of the curative properties of the Karlovo mineral srpings. That is why he decided to build a summer villa in the village. He purchased plots of land from the local villages and built on them a residence on the northern outskirts of the village in 1929, after the design of famous Bulgarian architect Ivan Vasilyov. The residential ensemble covers an area of 1 hectare, with the largest part of it (0.7 hectares) turned into a park. The architectural design of the residence features the characteristic elements and details of the 19-century Bulgarian revival architecture – a large veranda supported by five oak columns, windows with shutters and other elements, inspired by the traditional Bulgarian house of the revival period. The homestead includes two smaller buildings – for the guests and the servants of the estate. The property is fenced by a stone wall with two oak gates. The interior of the residence also follows the best traditions of the Bulgarian revival period furnishing with the characteristic couches, hand embroidered cushions and covers.

The royal residence served as an impetus for the development of the village as well. In 1930, King Boris supplied it with electricity and had it connected with the Plovdiv-Karlovo railway line. Banya now has a beautiful park, covering an area of 50 hectares. The park development began with the support of King Boris III. The first poplar trees were planted in 1938. Nature lovers can see there decorative tree varieties like red oak, Scotch fir etc.

In 2002, the resort of Banya attained the administrative status of a town by force of a decree, issued by the government of Simeon II. The development of the tourist industry has become a priority sector for the area and the royal residence is one of the tourist attractions there. Guests to the town can visit the wine hall of the residence for a treat to the unique Karlovo wine brands.