It also served as the Admiralty House, residence of the Commander-in-chief of the Indian Fleet from 1770–1795.
Lachlan Macquarie, who was later the Governor of New South Wales (1810-1821), lived at Admiralty House.
He records in his journal for 23 April 1794 that – Mr. Tasker having been so obliging to give us a friendly invitation to live in his town house (Admiralty House), during the hot weather and while he should remain in the country, (where he lives at present) we accepted of his offer.
The property was purchased by Rustomjee Jeejeebhoy and then sold to the Sassoon family.
In time, the hotel closed and the rooms have been divided and further subdivided for optimum rental.