The Collaborative International Dictionary of English v.0.48:

Serai \Se*ra"i\, n. [Per. ser[=a]["i], or sar[=a]["i], a palace,
   a king's court, a seraglio, an inn. Cf. Caravansary.]
   A palace; a seraglio; also, in the East, a place for the
   accommodation of travelers; a caravansary, or rest house.
   [1913 Webster]