Shangri-La Toronto is located on University Avenue and Adelaide Street, in an area just west of the Financial District that has seen rapid growth in recent years.

The one exception was a structure that served as one of the city's first hotels and then for many decades as a pub, the Pretzel Bell Tavern, which became a popular hangout of the Maple Leafs.

This building was disassembled for the construction of Shangri-La Toronto, but the developers had pledged to rebuild and restore the Bishop's Block as part of the project.

Before excavation, the site was the subject of several months of archaeological exploration, and many artifacts from the city's early history were found.

At 102 ft (31 m), Shangri-La Toronto was the second-deepest excavation for a building in Canada's history, with only Scotia Plaza being deeper.