Historic Heritage Hotel in the CBD | The Grace Hotel Sydney

Uncover the history behind Sydney’s iconic Grace Hotel

Gracefully nestled in the heart of Sydney’s CBD, The Grace Hotel is more than just a place to stay - it’s a living piece of the city’s heritage. Built in the late 1920s by the Grace Brothers and inspired by Chicago’s Tribune Tower, the building blends Art Deco elegance with Neo-Gothic grandeur. Once the crowning jewel of a retail empire, it later served a role in wartime Australia before being thoughtfully restored. Today, every corner of The Grace tells a story, one of timeless architecture, rich history, and enduring charm.

Learn more about the history of The Grace Hotel and discover the moments that have shaped this iconic Sydney landmark below.

An Old image of the exterior of the hotel at The Grace Sydney

Introduction

The landmark "Grace Building" has played an important role in the history of Sydney and Australia. It was built by the Grace Bros. retail empire and remains one of Sydney's most prominent examples of pre-war architecture.

Today the Grace Building has come into its own as one of Australia's best known hotels located within a grand heritage building.

An Old image of Crace bros near The Grace Sydney

1926

The Grace brothers, Albert Edward and Joseph Neal Grace purchased land on the corner of York, Clarence and King Streets. Prior to the construction of the Grace Building, the site held Sydney's first Opera House in the early years of last century.

Vintage photo of the Grace Building, an Art Deco tower with classic cars parked below at The Grace Sydney

Construction of the Grace Building design was sanctioned by Sydney City Council. The building was commissioned by Kell and Rigby, under close surveillance by architects Morrow & Gordon.

Its construction as the company's 'showpiece' symbolised the peak of the 1920s' retail boom, particularly for Grace Bros., which had become the biggest retail organisation in Australia and had also achieved the largest per capita retail sales in the world.

The Grace brothers believed that with the construction of the Harbour Bridge, York and Clarence Streets would become the new major city thoroughfares. Company letterhead even described the building's location as "on the Harbour Bridge Highway".

Providing a distinctive and unique landmark in the city, the Grace Building was based on the Chicago Tribune building in the US, and has been classified by the Australian National Trust as a heritage-listed Art Deco Building. The building also appears on the list of key 20th Century buildings kept by the Royal Australian Institute of Architects.

1930

Ahead of schedule The Lord Mayor of Sydney, Alderman E.S. Marks, officially opened the Grace Building on 3 July 1930. The new Grace Building was deemed to be a modern office block, setting a high standard for commercial architectural development henceforth.

As it would turn out however, Grace Bros. were mistaken in positioning the Grace Building as they did. Despite the Harbour Bridge's opening, York and Clarence Streets did not develop into busy city thoroughfares and with the depression, the Grace Building never became the crowning glory the Grace brothers intended it to be. While the company expanded into the suburbs, the Grace Building had become a financial liability. Official Grace Bros. history publications described the Grace Building as "a dream turned sour", "the white elephant" and "a commercial gothic monster".

Greyscale picture of a man in uniform standing on a rooftop near The Grace Sydney

1939

During World War Two, the Grace Building was requisitioned by the Federal Government for use as headquarters of the Supreme Commander of Allied Forces in the South-West Pacific, General Douglas MacArthur.

Special safety precautions were taken during his use of the building, including the installment of an air raid shelter in the basement. It was thought the series of tunnels that ran beneath York Street to Circular Quay were connected to the basement of the Grace Building during the war.

The US Army Small Ships department also occupied the Grace Building, supplying both Australian and US servicemen during the war.

1945

The Commonwealth acquired the Grace Building for us as Government offices. This was a compulsory acquisition that was strongly contested by Grace Bros.

1946 to 1948

In order to claim compensation on the grounds that the acquisition was invalid, Grace Bros. issued two writs in the High Court.

Old image of a Fabric shop near The Grace Sydney

1953

The Grace Bros. were awarded compensation of approximately 1.3 million pounds. This settlement enabled Grace Bros. to further expand their department stores into Sydney's suburbs.

Image: Hood Collection, State Library of New South Wales

1995

Purchase of the Grace Buildling by Malaysian developers, The Low Yat Group which promptly processed with architectural and operational planning for retail and hotel use.

1996

This era marked the commencement of restoration works and conversion of Grace Building into The Grace Hotel and Grace Plaza.

The redevelopment retained much of the Grace Building's key Art Deco features, such as high internal ceilings, pressed metal exterior ceilings, original lifts and stairwells, wide hallways, marble flooring and decorative iron work.

View through a honeycomb window frame of a vibrant Art Deco stained-glass window inside The Grace Sydney

1997

August, 1997: Grand Opening of The Grace Hotel Sydney, officiated by the Honourable Bob Carr, Premier of New South Wales, Australia.

Federal Hotels International (FHI), the hotel management company of the Low Yat Group now manages The Grace Hotel.

Signature Deluxe King with a bed, art over the headboard, & a cushioned armchair by the window at The Grace Sydney hotel

Today

The Grace Hotel's 387 spacious, modern guest rooms are designed with frequent travellers in mind. For a home away from home, each room is furnished with earthy tone décor and thoughtful amenities. Our signature piece is the exceptionally comfortable bed with a soft feather duvet and pillows.

Relax and keep fit at our rooftop Recreation Centre with gym, indoor lap pool, sauna and steam room overlooking the city skyline. If you are in the mood to indulge, a range of bars and restaurants offer a relaxed ambience for wining and dining within our Grace Building.

Our function rooms have a charming ambience and abundant natural light. Host an elegant event at The Grace Hotel and impress your guests with the classic pre-function area set against the graceful atrium chandelier. Our attentive service and quality will ensure your event is a success.

Bask in the oasis of space in our Signature Rooms of various sizes that feature comfortable beds that our guests have come to expect from us. All have views either of the city or into a naturally lit atrium located in the centre of the 11-storey hotel. The pièce de résistance in every room is the exceptionally renowned comfortable bed with its soft feather comforters and pillows.

Stay for business and be inspired by our eco-friendly amenities and conveniences for a worry-free trip, or relax with us over a leisurely weekend staycation.

Collage of vintage images and newspaper clipping showing the Grace Building and the Harbour Bridge used at The Grace Sydney

Historical photo collage showing old Grace Bros. storefronts, interior, and a rendering of the Grace Building tower

Vintage drawing of the Art Deco The Grace Sydney on a city corner, featuring the tall central tower above the street

Image References

1. Morrow and Gordon collection, State Library of New South Wales | 2. Hood collection, State Library of New South Wales | 3. Noel Bell, Ridley Smith & Partners