The Austrian Hospice in Jerusalem was founded in 1854 by the Austrian Catholic Church as a hostel for Christian pilgrims visiting the Holy Land. It quickly became a centre of cultural exchange and interreligious dialogue between the Austrian and local communities.

During the early 20th century, the hospice played an important role in the development of the Zionist movement, providing support and assistance to many early Zionist leaders. The hospice also served as a refuge for Jews fleeing persecution in Europe during World War II.

In the 1950s, the hospice was extensively remodelled and expanded to include a guest house and a cultural centre. Today, the hospice is a welcoming home for travellers visiting Jerusalem, providing comfortable accommodations and hosting various events and activities to promote interfaith understanding and cooperation.