The Villa Marina started as an Estate. The land was acquired by George Steuart, who shortly after the purchase died in 1806. Some of the land was sold off and on the rest a house was built by the late Steuart's son for his mother. Upon Mrs Steuart's death the house become a school and then a governor residence. The latter in 1861 indicated the starting move from the capital then in Castletown to Douglas, as accommodation in Castletown was unavailable for the new Lieutenant Governor Pigott.

In 1868 the Estate was bought by Henry Bloom Noble for £7,000. Upon his death in 1903 the Estate was offered for sale as a tourist site to Douglas Corporation in his will. In 1910, the Villa Marina Estate, then known as Marina Lodge, was purchased by Douglas Corporation from Noble's Trustees for £60,000. The Villa Marina Royal Hall and Gardens were opened in the the summer of 1913. Extensions to the Villa Marina were made in 1931. These included the Colonnade, Veranda, Public Conveniences and Arcade.

In 1973, the Reading Room was converted into a Conference Hall. A new bandstand was erected at the Villa Marina in 1996. In 2001, the Villa Marina underwent a complete rebuilding and refurbishment, which will be completed in April 2004.