It is said to have been built by Don Francisco Antonio Alday and Don Antonio de Urrutia y Arana, Marquis of Villar del Águila because the Marquis fell in love with a Clarist nun, who had a strong religious vocation and did not accept the Marquis's proposals but asked him to build the most beautiful house in Querétaro. Another story suggests that it was built for the Marquise to live here, separated from her husband who lived two blocks away.

It features carved decorated arches that show a clear Moorish influence. It has wonderful wrought ironwork, a chapel, and efforts have been made to carefully restore the original paintings on its walls.

In addition to the romantic legends, the house has a lot of history to tell as it has hosted figures like Agustín de Iturbide and Maximilian of Habsburg.

Currently, it functions as a boutique hotel.