Established in 1874 by the missionary Hobbs, and known as the Orphanage, the building has had an important humanitarian role in the lives of Nazareth residents. By the time of the First World War the orphanage had over four hundred female graduates. During the Mandate period, it became an elementary school and later an Institute for Mentally Handicapped children. Today it is used as a Pilgrims’ Inn, named after St. Margaret, and belongs to the Anglican Church. The building and its area are surrounded with walls and its large main gate used to have a watchtower on each side. The front of the building now has a balcony overlooking the historic town center.