In the 19th century Khiva developed intensive commercial contacts with Bukhara, Persia and Russia what required new trading areas. As the major markets were operating about the gates of Palvan-darvaza, Allakuli-khan built there a huge caravanserai in the 1830s. They had to breakthe Ichan-Qala’s wall nearTash-Hauli Palace to locate new caravanserai.
The caravanserai was a hotel for merchants and wholesale shop. Soon the main facade was added with dome shopping mall-tim. Its western and eastern facades were designed as city gates and faced with brick. Shaped brickwork decorated the corner towers.
