The first Jehan Numa hotel - Jehan Numa Palace - was built in 1890 during the rule of Nawab Sultan Jehan Begum, and named after her, by her second son General Obaidullah Khan, Commander-in-Chief of the erstwhile Bhopal state Force. After the death of the General in 1924, the Palace was occupied variously, moved and renovated, and through this time the General's sons continued to use it as their secretariat till 1952, when all Jagirs were abolished by the Government of India. The family rented it out to the Government for use as a hostel, and then as the office of the Geological Survey of India, till 1981.
Nadir and Yawar Rashid, the grandsons of General Obaidullah Khan, and the owners of the Palace, then decided to share their legacy with the world and convert it into a world-class heritage hotel. Jehan Numa Palace Hotel opened its doors to visitors in September 1983. In the year 2000 the Palace was classified as a Heritage Grand Hotel, the first of its kind in Central India. Additions and changes to the original Palace are imperceptible, so seamlessly do they blend into the style and structure. The fine tradition of Bhopal hospitality continues, albeit in a new form. The younger generation, sons of Nadir and Yawar, are also involved now in running the Jehan Numa Hotels. Royal living, once the sole preserve of nawabs, is offered to guests generously and with courtesy.