After the liberation of Psara from the Turkish thrall that lasted 88 years, (from 22 June 1824 to 21 October 1912) it was repaired and was used as a Station of Constabulary.
During the German occupation was used as a command post - observatory under the Germans.
After the withdrawal of German troops ,the building remained for a long time unused, with result to suffer serious damage and deterioration. In 1978 with initiative and efforts of the newly established association Adelphotita Psarianon (Brotherhood of the Psarians) with chairman Dimitrios G. Andrianas, the Greek Tourism Organization undertook his restoration, with the collaboration of his then secretary and friend of Psara, Panagiotis Lampria.
From 1980 it was used as a guest house of the
Greek Tourism Organization.
From 1999 the right of use- exploitation has returned to the Temple of Agios Nikolaos.
The hotel remains closed from 2004 and the Church along with the Municipality of Psara have made moves for it to be repaired and to operate again.