This palace was built by Dutch in 1744 and is one of the oldest existing Dutch palaces outside Holland. This Dutch palace is situated on Bolghatty island which is just a short boat ride away from the mainland. The palace has been converted to a hotel run by the Kerala Tourism Development Corporation (KTDC). The island has a tiny golf course and the panoramic views of the port and the harbour, makes it an attractive picnic spot. Frequent boat service is available from the mainland.