Via Starwars.com:
Jabba the Hutt’s home on Tatooine is an unlikely place. The immense building beyond the Dune Sea is seemingly in the middle of nowhere, and it’s on a planet that isn’t exactly known as a hotbed of any kind of activity other than Podracing. In this case, location isn’t everything because despite geographic challenges, Jabba has the credits and influence to attract quite the variety of denizens — in one way or another. Jabba’s throne room seems as crowded as the Mos Eisley Cantina, and when we enter the Hutt’s palace in Return of the Jedi, we meet a bevy of new aliens and creatures for the first time.
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