The Grand Hotel Melbourne's building began its life in 1891 as the main office of Victoria's railways, and the Ministry of Transport occupied the building for almost a century. The building was transformed into a hotel in 1998, retaining much of its original Victorian splendor, including its elegant stone facade, tall windows, and Art Nouveau-style glass entryway. Inside, the small lobby has red carpeting (similar to that found in some of the rooms) and an old-fashioned lounge area with a piano, chessboard, and fireplace, as well as leather and upholstered chairs and a wall of books -- including an old encyclopedia -- for guests to borrow and flip through. Just beyond is the hotel's small, similarly styled bar and restaurant, with red carpeting, black-and-white patterned chairs, leather sofas, a long wooden bar, and a small patio of wrought-iron bistro tables and chairs. With its apartment-style rooms, the hotel caters to both tourists and business travelers, and is especially popular with long-term visitors who need to be near the Central Business District or the Convention Centre.  

The Grand Hotel Melbourne is located in Melbourne's Central Business District, close to the Southern Cross train station, Etihad Stadium, and the Docklands. One side of the hotel is practically atop a train line, but the rooms and common areas are nonetheless quiet. The SEA LIFE Melbourne Aquarium is a seven-minute walk from the hotel, while the Melbourne Convention and Exhibition Centre is an eight-minute walk. It's a 10-minute drive to the National Gallery of Victoria and about as far to the Melbourne Cricket Ground, although both can take significantly longer during peak traffic times. The Royal Botanic Gardens are a seven-minute drive away, as is the Queen Victoria Market. The hotel is well connected to public transport, and the Melbourne Convention Center tram stop is a one-minute walk away. The airport is a 15-minute drive away.

The rooms at the Grand Hotel are all apartment-style, with private kitchens with full-size refrigerators, stoves, and microwaves; in two-bedroom apartments, there are also laundry facilities. Apartments vary in size, including studio, one-bedroom, and two-bedroom configurations; Deluxe rooms have been more recently remodeled and, as such, are not just more stylish but also have Nespresso machines, bathrobes, and slippers. Decor in the regular apartments is rather basic, consisting of red patterned carpets, light-wood furniture, and living rooms with sofas and chairs in muted shades of burgundy and olive. Deluxe rooms feel more modern and Scandinavian in style, with gray carpeting, dark wood furniture, and lounge furniture in hues of black, white, and charcoal. All apartments have flat-screen TVs and pillow-top mattresses, and Deluxe kitchens have upgraded brushed-chrome appliances. Both one- and two-bedroom apartments are constructed in a loft style, with living and dining areas on the main floor. Bathrooms in the Classic rooms have shower/tub combinations and marble-top vanities topped by large mirrors. Deluxe bathrooms have been refurnished to include vessel sinks on countertop tables and large walk-in showers with rainfall and handheld shower options. All rooms come with Appelles Apothecary toiletries.

The hotel's RAB Restaurant & Lounge Bar serves breakfast and dinner daily. Breakfast, not included in most rates, is served à la carte, with items such as bacon and eggs, granola, and lemon and ricotta pancakes on the menu. Dinner options range from salads and pastas to heavier mains featuring modern Australian cuisine. Room service is also available, but only in the evening. The bar and restaurant can also be rented out for private events and there's a conference room available to rent.

The hotel has an indoor swimming pool with atrium-style skylights that let in plenty of natural light. There are a few lounge chairs on one side of the pool and a wall of windows with a glass door leads out to a garden courtyard area with shrubs, trees, and bench seating. The hotel has a fitness center with a handful of weights and machines, and there's a single co-ed sauna adjacent.

Wi-Fi is available throughout the hotel for a fee and paid indoor, outdoor, and valet parking are all available. The hotel offers dry cleaning and laundry facilities are available.