The importance and fame of this amazing location was noticed during the Mycenaean period (1600-1400 B.C.) when a King ordered the construction of a Thule tomb for His Queen. In this way, the King wished to demonstrate His power and to express His love and devotion to the Queen. This tomb was discovered whilst the Hotel was under construction and is now on display.

Many amphorae, cylices, various pots and two golden necklaces were found during the excavation; some of them are being exposed at the Archaeological Museum of Mykonos. On the same spot (years after) the famous Pirate Barbarossa settled his observatory.