When Gaetano Koch constructed this building, he incorporated the old Palazzo Orsini into it. This was the only part of the Villa Ludovisi still remaining and which this noble Roman family still owned. When the Ludovisi family sold their palace near the Santi Apostoli to the City of Rome, they commissioned the construction of a new residence but, during the work, their serious financial problems forced them to sell it to the royal family.

So when the work was finished, the building became the residence of Queen Margherita who lived here until 1924. After the Second World War, the United States of America bought the property, turning it into the American Embassy and Consulate.
The section of Via Veneto going from the Embassy up towards the walls of Rome is the most famous. Here the street is lined with the popular bars that were once the scene of Rome's legendary nightlife.