The stone arch and ceiling stem from a building from the 18th century. There was a bakery here with ovens that were probably located outside. Two of these ovens still exist. However, today they can be found in the library (deactivated) and in the garden (in the original form). It is possible that this bakery had a connection with the sanatorium that operated in 1853 in a building owned by Morgado António Moniz de Aragão at Rua do Castanheiro No. 10. The latter was demolished in the 1980s, and this area is now part of the Castanheiro Boutique Hotel.

Due to the climate, considered suitable for the treatment of pulmonary diseases, Madeira attracted many foreigners, which led to the development of “therapeutic tourism” towards the end of the 19th century. This involved staying in quintas (estates), that were converted into hotels, for long periods of time.

The foundation of a sanatorium goes back to a request by Amélia von Leuchtenberg (widow of Emperor Pedro I of Brazil) to Queen Maria II of Portugal, her stepdaughter, as her daughter Maria Amélia had died of tuberculosis in Madeira in 1853 in the Quinta das Angústias (today known as Quinta Vigia) at the age of 22. While the future sanatorium, inaugurated in 1862, was under construction, the building on Rua do Castanheiro served as a temporary facility.