The land that Royal Naval house stands on was once part of the western limit of the first Military Parade Ground of the Colony. The Street was originally called Charlotte Place, named after Queen Charlotte, wife of King George III. In 1897 the name of the street was changed to Grosvenor, honouring the extravagant Grosvenor Hotel which stood at the top of the street from the 1880s-1927. The construction of Royal Naval House as a substantial hostel indicates the continued presence of the British Navy in the Pacific in the late nineteenth-century and their role in protecting merchant shipping. Unlike the majority of naval facilities in Sydney Harbour it was not built on one of the harbour islands or on the foreshore. King George V (1910-36) took a personal interest in the site, having visited Sydney in 1881 and 1901 when he assisted with fund raising for its construction and operation. In the 1990s-early 2000s the building became offices for the Sydney Stock Exchange.