The location of the barracks is on the former "Grätzelschen" factory site; a drapery factory, which was blown up after its closure. The first building plans were drawn up in 1854 by the building designer at the time, Georg Hilziger, based on designs by building officer Carl Heinrich Wilhelm Wolf.
The master builder at the time, Carl Frühling, was commissioned to build the palace barracks.
The castle barracks were built between 1857 and 1860. It was used from Easter 1860 to house the body battalion. The barracks served as a training facility for recruits from various military units until the First World War.
The palace barracks complex also includes some additional buildings, such as the military hospital (now residential and commercial building), the drill and riding hall (now sports hall) and the NCO's house in Hasselfelder Street.
After the end of the First World War, the barracks had to be closed due to the Versailles Treaty.
Drawings from 1921 by the Heeresbauamt Aschersleben allow the assumption that the barracks were used for residential purposes until the introduction of general conscription in 1933. During the “Third Reich” the castle barracks were used again for military purposes. It served to accommodate a wide variety of military units.
On May 13, 1946, the barracks was cleared by the Soviet military administration and made usable exclusively for residential purposes with a permit.
Parts of the castle barracks were still inhabited until the beginning of 2009. From April 2009 until the opening on February 1, 2010, the palace barracks were converted into a four-star hotel. The listed building was supplemented by a new building on the former barracks courtyard, in which the reception and the restaurant are located.