The palace was designed in 1930 by the architect Marcu and built in 1936 for Princess Elisabeta, the former queen of Greece and sister of King Carol II.
Maria Alexandrovna was the first to suggest a marriage with George the crown prince of Greece, an idea quickly embraced by Queen Sophie who wrote to Marie in November 1919 about Elisabetha: “We found her lovely, most sympathetic and charming. Upon our dearest son Georgie she has made a deep impression. We are most anxious to know whether Nando and you would have any objections to a marriage between the two young people, who seem to have a deep feeling for each other.”
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Maria Alexandrovna admitted that her granddaughter must be observed: “don’t let Elisabetha flirt too much with young Romanians, patriotic as she is, she might so easily fall in love with somebody and then you could easily have to face la mère à boire. Young princesses in our times have wills of their own and become obstinate. But I always come back to the same conclusion: Elisabetha must soon go out dans le vrai grand monde”.
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In 1928, the spa was renamed Carmen-Sylva, after the pen name of Queen Elisabeth of Romania.
Queen's Road (named in honour of Queen Victoria) leads from the promenade through to the pleasant residential area of Craig-y-Don where Roumania Drive and several other streets are named in memory of the visit to Llandudno in 1890 of Carmen Sylva (Queen Elisabeth of Romania).