It would be reasonable to believe that the impressive building in neobaroque style at the beginning of Villányi Street is a palace. However, it has never functioned as a home for aristocrats but as a school, and once as a temporary hospital. The history of St. Margaret High School dates back a little further than that of the building because it operated at various locations. The origins go back to 1920 when Mother Steinmayr Stanislaa, the first Mother General of the Congregation of the Sisters of the Divine Redeemer decided to found an all-girls high school in Budapest. In a primary school building on the corner of Váli Street and Fehérvári Street the first academic year started in September, 1920 with 39 students and secular teachers following religious principles.

The name was chosen for a reason. The founders meant to pass on virtues of religious faith, selflessness and philanthropy that Margaret of Hungary was respected for to succeeding generations. Even the farewell wish for graduates said „Keep the Margaret flame alive!”. The number of students was growing year by year. Reaching a headcount of over 300 made it clear that the old building had been outgrown. Director Gabriella M. Gombos managed to obtain the plot at 5-7 Villányi Street and the on March 19, 1930 the construction began. The building was designed by Dr. Gáspár Fábián, although Mother Superior Gabriella was also deeply involved in the building project. She was committed to create the best and most beautiful. The new building opened in 1932.

The high school included 10 rooms for the all-girls school, 11 rooms for the boarding school and German High School, 2 rooms for the public school, an indoor swimming pool, research stockrooms, library, a teaching kitchen and a huge garden with game courts. Teaching languages was given top priority. Latin was replaced by German, as well as French and English were taught also. St Margaret High School gained recognition soon both locally and internationally.

The building was badly damaged during WW2 and studies were even suspended, however, later restarted with 12 primary school classes, 9 high school classes and 4 boarding school classes. In 1948, the school was nationalized and renamed to Flóra Martos High School, later on to Margit Kaffka High School. After the political changes in 1989 the restoration process started. Finally, religious education restarted in 1996.