Verbena Pension House had its humble beginning on May 3, 1976 when it started as a small makeshift eatery "Cozy Nook" located in the garage of Engr. Pedro Urgello's duplex residence along "Verbena Street", hence its name today. It served mainly taxi drivers trying to get hot comfort food (i.e. fish head tinola, caldereta, etc.). Later, office workers tried to eat there and coined the eatery as "Back Han Palace" since it was located behind the former "Great Han Palace".