The Grand Hotel's location was originally shrine during the Japanese occupation of Taiwan where the ROC government on Taiwan's recovery after World War II, the demolition had already been destroyed shrine in Taiwan and in situ converted into Formosa Hotel; 1952, replaced by Chiang Kai-shek and other dignitaries headed formed the "Foundation of Taiwan Friendship Association" (referred to as "Friendship Association"; Jing Province, formerly known as "Taiwan Friendship Association") took over the business and changed to its present name in the Grand Hotel, the original purpose Kai-shek to entertain the visitors.

Grand Hotel building was very small scale in 1963 when all of the hotel's infrastructure construction is completed. In 1968, the Grand Hotel the U.S. Fortune magazine as one of the world's top ten hotels. October 10, 1973, designed by architect Yangzhuo Cheng newly built 14-story Chinese palace-style building was completed, then became the Grand Hotel Taipei landmark.