The Elbershof mansion is one of many historic buildings in Monschau and has a rich history. Around 1778, Elbershof was built for Markus Martin Bauer as a three-winged complex based on the French model.

In the 18th and 19th centuries, the textile industry in Monschau experienced a heyday. Local weavers and dyers were skilled at making high-quality textiles, and demand for their wares grew in both domestic and international markets. The textile industry brought prosperity to Monschau and the town grew rapidly. Many traditional half-timbered houses were converted into textile factories and weaving mills

In 1804 Johan Heinrich Elbers bought Elbershof; the building with living quarters and workshops is very similar to the cloth factories in Eupen. The cellars contained extensive production facilities for the textile industry. Opposite, on the other side of the road, used to be the weavers’ corner of the factory. A little lower down the street at Rosenthal was the former office, factory and warehouse building of the Elbers company.