The Hotel has a strong association with Australia's political history, most notably as the residence of Prime Minister Ben Chifley throughout his parliamentary career, including his term in office from 1945-1949.

Hotel Kurrajong was built between 1925 and 1927 as a hostel to provide accommodation for public servants in preparation for the relocation of the Parliament from Melbourne.

The same concept of pavilions centred around garden courts was used for the earlier Hotel Canberra, built shortly before on the opposite side of the Parliamentary Triangle.

After declining an invitation to attend a Jubilee Ball to celebrate 50 years since Federation the nearby Kings Hall, during the evening of 13 June 1951 he suffered a fatal heart attack while in his room at the hotel.

As the second built of eight residential hostels planned during Canberra's early establishment, the hotel is also protected by the ACT Heritage Register[9] and any alterations must be first approved by the National Capital Authority.