The castle of the Prince of Oldenburg is in the heart of Old Gagra, on the hillside, near the confluence of the river Laquari into the Black sea. On the black sea coast of the Park, where they were planted orange and lemon trees, cypresses, palm trees, agave.

The famous castle of the Prince of Oldenburg was built in 1902 in art Nouveau style. The author of this project were made by the architect K. I. Luteranskiy. The Palace is an amazing building with covered with red tile roof, balconies, chimney pipes and tower of the Falconer, which fits perfectly into the overall ensemble of the castle. In parallel with the construction of his castle, the Prince began to put into practice a plan to establish a climatic resort, the so-called "nice Russian", and that was his crowning achievement.

Through investment of the Prince in the city was established subtropical College and Telegraph, as well as plumbing and electric lighting. In 1903 the restaurant gagripsh opening ceremony of the climate station, this day is considered the day of Foundation of the resort.

But all this could not save the Prince of Oldenburg from the disaster. With the outbreak of the First world war, the Prince was recalled to St. Petersburg, where he was appointed Supreme head of the evacuation and sanitary parts. In Gagra he never returned. In 1917 Alexander Petrovich went to Finland, and later to France. The last days of the Prince of Oldenburg held on the French côte d'azur.

In 1992-1993 Gagra, including the castle, was at the center of the fighting, and therefore suffered many fires and robberies its much mutilated. Today, the tourist business in the city is fairly active. However, the castle of the Prince of Oldenburg is in a dilapidated condition, so temporarily closed to the public.