The original building on the site was a simple, single-storey structure with open verandah to the street,[1] inhabited by a Dutch Governor.

[3] The Grand Oriental Hotel was officially opened on 5 November 1875, and had 154 luxury and semi-luxury rooms.

With its towering front facing the harbour and the shipping and its main portico separated by only a few yards from the principle landing stage, it occupies both a commanding and convenient position; and passengers by the mail steamers who are passing through the port are especially catered for at this establishment in the very best style…The building contains 154 bedrooms…The hotel is lighted throughout by electricity and all the public rooms and bedrooms are kept cool by means of electric fans.”[7]The GOH began to prosper from the beginning and many wanted shares in the hotel.

[8] The hotel had its own landscaped tropical garden, which was illuminated at night with coloured lights,[9] together with a resident orchestra, which performed twice daily, and held special concerts on Wednesdays and Sundays.

In 1940 though still under the British management the colonial only tag started to change and locals too were seen dining and even hosting weddings in the hotel.

In the early 1950s the communal violence and political situation in the country combined with a series of strikes in the hotel[11] prompted the Dutch Burgher proprietor, Sam De Vos to sell the property.

[13] However he was replaced on a court order in 1960 and the hotel had no official management for nearly two years during which time the employees faced tremendous hardships.

[18][19] In 2012 BoC shelved plans for any refurbishment or joint management[20] In May 2016 the President of Sri Lanka, Maithripala Sirisena, requested the Ministry of Public Enterprise Development issue bids for sale of the Grand Oriental Hotel.