In 1886 a famous and wealthy merchant Mirza Davud constructed a big and delightful house in the center of Bukhara. Construction and interior decoration works were carried out by a very skilled architect Usta Shirin Murad. It was not his the only project. The present Summer Palace of Emir of Bukhara and Tashkent Opera, and Ballet Theatre are also among his outstanding works. After the Great October Revolution in 1917 in Russia Mirza Davud sold his house to another rich tajik merchant. The new owner of the house had been living there for 20 years whereupon in 1937 the house became the property of the government and the owner was repressed. The house was used as a school named after Karl Marks. During the World War II and until 1950 it was used as a hospital. Thousands of injured and heavy wounded troops found here a chance for living. After 1950 a school worked until 1965 i.e as long as the current school of Karl Marks was built. The house was given onto disposal of younger generation and until 1976 a kinder garden exhisted here. From 1976 to 1984 it was a communal house.
Five or Six families used to live here as long as one tenant (officer for internal affairs) bought the house and evicted other families becoming a sole owner. In 1987 the house was sold to local Jew who resold it to local Tajik Sayfullo Zairov - present owner of the hotel. Lyabi House Private Hotel is opened on the basis a renovated 19th century house. It boasts a classical summer aivan covered veranda and splendid pediment with well proportioned windows. Blessed with historical elegance the 19 century hall is being used as a dining room. The house has been lovingly and sympathetically restored for 4 years (1991-1995) and now again it enjoys the pleasant combinations of colors and delicate geometrical patterns, sophisticated glass, stuccoed works. Hebrew verses, luxurious paintings and decor reflecting the talent and taste of the 19th century masters. The charming house is decorated with finest antique articles and creates a thrilling and pleasant atmosohere. Between the contrast of modern and old architecture one is filled with overwhelming pleasure and a new sense of history.