The history of the Tobacco Park complex, to which the Tobacco Hotel belongs, dates back to the late 19th century, when one of Łódź's manufacturers, Karol Kretschmer, began looking for a suitable place to expand and modernize his textile plant. Kretschmer's factory, one of the first in Łódź, was previously located in the city center on Piotrkowska Street, where it was difficult to find space large enough to realize the vision of the enterprising industrialist. Kopernika Street (then Milscha) was not a random choice. Its location on the outskirts of the city at that time created ideal conditions for the systematic expansion of the factory complex, and the proximity of the newly built railway line and the still operating Łódź Kaliska station made this location exceptionally attractive from a logistical point of view.

In 1925, the complex became the property of the State Tobacco Monopoly, and a year later was expanded with buildings in a modernist style. Today, one of these buildings houses the Tobaco hotel. It took its name from the Tobacco and Cigarette Factory, which the former textile plant was transformed into. This factory, one of the largest in Poland, operated until the end of the 20th century, producing well-known packaged cigarettes such as Płaskie, Egipskie, and Popularne.