In the centre of Lovran, on St. George’s Square and next to the town tower, the palace of the noble Auersperg family was built. From the way it has been constructed, its shape and the fact that almost every element of the original architectural style has been preserved until today, it can be concluded that the house was built somewhere between the end of the 16th and the beginning of the 17th century. In any case, it was mentioned and described by J. W. Valvasor in 1689.
The palace was built on the inside of the town walls, in the centre of the town, from where it had a good view of and an exit to the sea. It was built with massive stone in a square form with inner courtyard which is today completely preserved, even though it needs renovation. The thick walls are made of carved stone blocks, which provided protection from heat during the summer and cold during the winter. The high entrance ensured a certain defence security for the house, and from the loggia on the second floor any approach of an enemy from the sea could be seen. During periods of peace, the staircase at the front of the entrance was used as a resting place, and even today from the loggia there is an exceptionally pretty view of the sea and the nearby islands.
The staircase is made of bigger stone blocks on which, even today, some barely readable inscriptions can be seen. At the beginning of the 19th century, a wooden statue of St. George killing the dragon was placed in the lunette above the entrance portal. (The original statue is now kept in the small church of St. John, and a replica has been placed above the portal.)
The Auersperg family had a long and rich history. Already in the 13th century they were owners of castles, towns and properties in Slovenia and Hrvatsko zagorje. Some family members distinguished themselves in the fight against the Turks, and in the new Turkish defence system (the historic area known as the Military Frontier), Baron Herbert Auersperg VIII (1528-1575), as captain of Senj and commander of Senj Military Frontier, organized caravans which carried wheat and other groceries from Istria over the Učka massif and Lovranska Draga to ships that were anchored in Lovran harbour. His successors later organized trade in the same manner, which earned them great profit.
When the Auerspergs sold Pazin County to the Austrian Emperor, this house was excluded from sale for some reason which is still a mystery today. In the years that followed it became the seat of the town administration. This is attested to by the crests of the town's mayors on the front of the house. It was then that the house was upgraded with a south wing.
It is interesting that the crest of the Auersperg family, which at its centre has a carnation, can be partly seen even today – however not on the front of the building, but on the sixth step before house entrance.