The foundation stone was laid by Sir Henry Parkes in 1889, and the opening of the new establishment was performed two years later by Sarah Bernhardt, whose name was first in the new hotel's register, subsequently displayed in a glass showcase in the main foyer.

Her expensive flower filled 2nd floor suite played host to pets including a large St Bernard, a smaller pug dog, a native bear and several cages containing possums and parrots.

The hotel had a large main entrance on Castlereagh Street in polished granite, the stairs grey and white marble, the doric columns red.

From that floor to the 10th a massive carved and highly polished mahogany Victorian grand staircase, with stained glass windows, led to their rooms those guests, who, in the early days of lifts, still preferred to walk.

A small branch of department store David Jones was located in the hotel, which provided goods for visitors, hampers for sending to Great Britain and Australiana souvenirs.