In 1892, George developed a fever while touring the Far East with his brother the Tsarevich (the future Emperor Nicholas II). His illness became worse and he was returned to Russia on board a destroyer of the Russian Imperial navy.

Over time, George developed tuberculosis and was sent to the Caucasus, where the climate was deemed healthier. A small palace was built for him at Abbas Tuman at the request of his brother Nicholas. It was built near the town of Borjomi (Georgia). The residence was built of wood and without a single nail.

He lived here for the remainder of his short before succumbing to his illness in 1899. He was found dead on the side of a road, next to his overturned motorcycle. He was only twenty eight years old.

The palace, as well as several other buildings have survived to this day which include a church, an observatory and a bath. Since 1995, the palace has been used as a nunnery.

In March 2008, a fire engulfed the palace, destroying part of the former Imperial residence. The cause of the blaze is not known. Sadly, officials have no plans to restore the damaged portion of the palace.