It was opened by the Prime Minister, Robert Menzies, on 24 August 1962 as Australia's first modern 'International' hotel, heralding the arrival of American-style glamour, the jet-set and international tourism.

With the increasing use of faster jet planes, the concept of international travel as a glamorous activity for both tourism and business purposes developed through the late 50s and early 60s.

[3] Billed as luxury hotel costing £5,250,000, that provided "comfort and service without equal",[4] the completed building was opened by the Australian Prime Minister Robert Menzies on 14 August 1962, live on television.

[5] The Southern Cross was an immediate success, attracting the growing international 'jet set', and hosting most world-famous visitors to Melbourne in the following decades such as the Beatles, Judy Garland, Rock Hudson, David Cassidy, John Wayne and Marlene Dietrich.

With the opening of more, large luxury hotels beginning with the Hilton in East Melbourne in 1974, then the Grand Hyatt in nearby Collins Street in 1988, and the Langham in Southbank in 1992, the Southern Cross lost its premier position.

In the early 1990s, having already lost many of the 'themed' rooms, another refurbishment removed more of its remaining original character, the most dramatic change being beige paint over the blue tiled exterior.

The proposed redevelopment of the Southern Cross Hotel included significant upgrades to guest accommodation, restaurants, a grand mezzanine and lobby, with numerous ballrooms and exhibition spaces.

These financial woes, combined with significant cost blowouts and delays, resulted in Nauru abandoning the redevelopment (amongst numerous other projects and properties in Melbourne and Sydney).

The double level plaza behind covered a larger area, had a long front along Bourke Street, and was wrapped around an internal square courtyard, with a central fountain.

A large illuminated rooftop "Southern Cross" sign was attached to the front and back of the two-storey screen wall that hid the services on the roof.

The use of purely decorative elements was exactly the kind of 'featurism' that influential local architect and critic Robin Boyd had consistently derided, especially in his 1960 publication The Australian Ugliness[18] (though he never specifically criticised the Southern Cross).