This caravanserai was built by the Grand Vizier Okuz Mehmed Pasha at the same time as the Kaleiçi Camii in Kusadasi to support maritime trade in the region.
It is a brick construction, consisting of a two-storied portico around a courtyard approximately 18.5 meters (60 feet) long and 21.6 meters (71 feet) wide, where there was once a fountain. The main entrance is through a 2.96 m wide marble gate in the north. A second gate on the east side opens onto the market. Stairs are located in the northwest and southeast corners.
The caravanserai was restored in 1965-1966 and converted to a 26 room hotel.