Its construction began in the 17th century, specifically in 1652, under the influence of D. Helena de Boim, wife of the captain-major Francisco Gil da Silveira. After the construction of a chapel, dedicated to the invocation of
Nossa Senhora da Boa Nova (
Our Lady of Good News), D. Helena de Boim decided to create a hospice, in order to lodge Carmelite friars, that included round-trips through the kingdom to the States of Brazil and Maranhão. By the time of the
1926 earthquake its role had changed significantly, and continued in the possession of the Ministry of Defense to the present, functioning as a military post, thereby affecting its use as a tourist landmark. The church is since 2021 the headquarters of the Horta's Sacred Art Museum, a museum that holds the largest collection of sacred art in the Azores, with a collection of objects dated since the 13th until the early 20th century, having in display a fine collection of
Flemish sculptures and others in the context of local religious institutions and private collections,
gilded woodcarvings,
portuguese tiles (Azulejo), sacred furniture, liturgical
jewellery and furnishings. ==Architecture==