Here’s a web site (in Japanese) that includes some old photos of Taiwan-jinja (shrine), which stood on the site where the Grand Hotel now stands.
homepage2.nifty.com/liondog/kuron/komatan_05.htm
Song Mei-ling chose the current spot for the Grand Hotel, and was primarily responsible for getting the project going.
There are also underground tunnels beneath the Grand Hotel which was not discovered until after the fire. The DPP was founded during a meeting at this hotel in the mid-80’s.
btw crankylaowai, your thread inspired me to post a similar thread at chinese-forums.com. 
Hope you don’t mind.
I think the Grand Hotel is beautiful. I didn’t think too highly of it during my residence in Taipei, but now I crave it after being gone from Taipei for 21 years.
If you have foreign family visiting, it’s an interesting place to take them. Good picture-taking there, and I like the retro feel of the place.
bump
i used to love going to the second floor cafe because of the great coffee, steak sandwhich and one of the best burgers around. Plus free parking. And the “get away from the city” kinda feel bout it. It was great.
p…s. how come every one who left taiwan can count how long they been away?? haha (like me) 
The Grand Hotel had the worst fried chicken I have ever had (room service). I don’t know how they made it that bad, but it was greasy, soggy and tasteless- and de-boned for some reason. I recommend people try it just because I’m sure it is unlike anything you have ever seen. Actually, the food was terrible overall. I did like wandering around the hotel, especially to the top floor banquet room where they have the huge dragon carved ceiling. I was there during a typhoon, so spooky.
That place needs a complete makeover. I mean didnt it open in 1974?? Its not got its glory anymore has it?
Ran into (or rather me and me then GF was almost run over by his entourage) Prince Rainier and Crown Prince Albert of MOnaco there once. Grace Kelly was upstairs in her room. Me Gf was saying why we had to wait while Rainiers entourage crossed the main lobby. I said well they be V.I.P. while we be V.U.P (very unimportant people)
It’s least 30%, having stayed in one during my first visit to the 'wan. You have a window… to the hallway. Major intl telecom conference… and the damn hotel had no ballroom!!! The meeting rooms are full of pillars.
The beauty of the Grand Hotel is nothing compared to the beauty of its swimming pool. gawd amighty. 50m. 10 lanes, maybe 12 lanes. No shallow areas. Water stays cool all summer. Underground locker rooms. It prolly was a KMT command center disguised as a pool. I heard about the tunnels… I would not be surprised if “badminton hill” behind the hotel is full of bunkers. The food carts behind the hotel at the trailheads, and shrines, badminton courts, and maze of paths, etc., on the hill itself, were my intro to the 'wan. Downtown was littered with huge concrete pedestrian overpasses. Made me want to stay in the pool.
I got offered a job teaching swimming to people staying at the hotel and I stayed there twice. I still don’t like the way it looks, but it’s way better than the commercial area around Taipei City Hall. Too bad it’s so shabby inside.