The mansion known today as Hotel & Restaurant Stadtpalais was built in 1565 by Franz II von Kerßenbrock on a plot of land previously acquired by his father from a certain Cordt Flörke in 1532. Franz married Anna von Canstein in 1567, fathered many children and died in 1576. His tomb lies in the Nikolai church opposite. The epitaph reads as a code of conduct directed at his offspring, closing with the words „These rules are your chivalric goal“. The bay window at the front of the house, decorated with family crests, emphasizes the family‘s ancestry and from the middle outwards, each generation is represented: parents, grandparents, greatgrandparents. In his testament - published, as was not unusual, but in itself a sign of wealth and rank - it states that Franz was „ ..at various periods a man of war in France, as well as other places , and had served high office....“. It is generally assumed that Franz had been a mercenary general in the wars against the Huguenots and that these services had formed the foundation of his wealth. At the end of his life, he owned four other properties in addition to No. 24 Papenstrasse, the latter generally used as a winter residence and summers spent out in the countryside. Later, his wife and widow Anna von Canstein lived on here and at another property near Eisleben in the county of Mansfeld. She too proved to be an enterprising character with architectural ambitions of her own.
The house next door - No. 22 Papenstrasse, now a dental practice and private apartments - already belonged to Arnd von Kerßenbrock, uncle to Franz, at some point in the first half of the sixteenth century. Arnd‘s son, Gerlach, built the house that stands there today. The family therefore had come to own a whole city block. In 1659 the house was sold to Jakob Henrich von Zütterich. The initials worked into the frontispiece of the chimney-breast opposite the hotel bar belong to him and his wife, part of a series of alterations initiated between 1660 - 1670. Leaping forward a century, around 1770 the house passed into the hands of a state official named Petri before passing into the hands of the state itself in 1838. It housed the customs and excise and tax offices, later on even the town‘s jobcentre. In 1970 it passed back into private ownership, that of a local art and antiques dealer named Ernst Rosteck. He undertook the conversion work that is almost unchanged to this day. In 1973 he made the most significant changes to the house since it was built. Parts salvaged from a demolished Weserrenaissance castle in Lower Saxony (Eimbeckhausen, built in 1610 by the aptly named Claus von Haus) were grafted onto or built into the hotel.