After monsters are done breeding at the Breeding Mountain, or after a monster is crafted, the resulting egg goes to the Hatchery. The Hatchery is a default building players have access to at the beginning of the game that cannot be purchased, stored, or sold. It is a 6x6 unit building. The hatchery can only hold a single egg unless upgrades are purchased with gems. It upgrades instantly, and can be upgraded while it is holding eggs.
Unlike most buildings, the Hatchery changes description and name as it is upgraded. Its name has its level appended to the end in all instances, unlike other buildings which don't have their levels appended to the end of their actual name and instead show their level separately from the name.