Pärnu Hotel is located in the heart of the city by a historical main street on the former location of Endla Theatre. The birth of a nation state began at the current location of Pärnu Hotel on 23 February 1918 at eight, when the manifesto of Estonian independence was first read to the people from the balcony of Endla Theatre, thus declaring a democratic Republic of Estonia.
Today, these historic events are commemorated by the memorial to the declaration of the Republic of Estonia, which is located on Rüütli Square in front of Pärnu Hotel, and the memorial indicating the former location of the historic Endla Theatre, next to the hotel.