King Street is one of the oldest streets in Lancaster. It was known as Chennell Lane in 1610 and is shown on Speed's map (no. 19). It was subsequently known as Back Lane. The northern end of King Street was widened in 1937. The name King Street may have come from via regia - the road to the Castle.

Penny Almshouses were established from a £700 endowment left by William Penny (Mayor of Lancaster) in 1716. They were built for 12 poor men in 1720. The photograph shows the gateway on King Street.

As well as the Almshouses there was a small chapel. From 1770 this chapel housed the Charity School (there was also a girls school established in 1772 in High Street). The boys school educated sons of craftsmen in reading, writing and arithmetic.

The Assembly Rooms were built in 1759 by the Trustees of Penny's Almshouses. Income from social events at the Assembly Rooms provided for the Almshouses. It now houses market stalls.

There has been an inn on this site at least since the late 17th century. Over the years the inn grew in size and importance. In 1766 it was assessed for 80 windows and from 1825 it became the most important coaching inn in Lancaster with seven named coaches arriving daily. Charles Dickens stayed here, as did members of European royal families. The old coaching inn was demolished in 1879 and the present building was opened in 1882.