In 1905, Malji Kothari, a rich merchant of the Kothari clan of Churu, wanted a place to entertain his wealthy friends. He imagined a gigantic mansion with enough space and beauty that could be theatre of dance, music and feasting. Kothari completed building it by 1920, and named it Rang Mahal, where musicians, dancers and performers of all kinds came to entertain the merchant and his royal visitors from far flung cities, as well as Bikaner.
Back in the day, when Churu still belonged to the state of Bikaner, the hotel was used as a rang mahal to host and entertain Maharaja Ganga Singh of Bikaner, on his travels to the region.