The current ("New") Palace Hotel (opened in 1909) is an historic hotel located in San Francisco, California , at the SW corner of Market Street and New Montgomery Street, immediately adjacent to BART 's Montgomery Street Station , the Monadnock Building, and across Market Street from Lotta's Fountain . It replaced the original Palace Hotel which stood at the same location from 1875 until it was destroyed by fire on April 18 , 1906 , as a result of the 1906 San Francisco earthquake .