Built by Phillip Gross in 1856 as a wood frame structure, the hotel was first called the Minnesota Haus. During the summer of 1860, Gross completely rebuilt the two-story wood structure, renaming it the Union Hotel Two years later, during the U.S.-Dakota War of 1862, it was used as a hospital and the dead were buried in the street nearby.
In July 1875, the hotel burned to the ground. Gross turned to architect Julius Berndt, best known as the "Father of the Hermann Monument," to design a new hotel, which opened the following summer. In 1898, then owner Peter Manderfeld added the third floor, then changed its name to the Grand Hotel.
It is now the home of the Grand Center for Arts and Culture.