The foundation stone was laid by Sir Henry Parkes in 1889, and the opening of the new establishment was performed two years later by Sarah Bernhardt, whose name was first in the new hotel's register, subsequently displayed in a glass showcase in the main foyer. The Sydney Morning Herald reported "French actress Sarah Bernhardt arrived in Sydney, bringing with her 100 pieces of luggage. As hundreds of fans flooded onto Redfern railway platform as her train approached, she was whisked away from the platform to the Australia Hotel where hundreds more excited fans wanted to catch a glimpse of the glamorous celebrity.
The inaugural stone was placed by Sir Henry Parkes in 1889, followed by the opening ceremony two years later performed by Sarah Bernhardt, whose name initially appeared first in the hotel's records and subsequently displayed in a glass case in the main lobby. The Sydney Morning Herald reported "French actress Sarah Bernhardt arrived in Sydney, accompanied by 100 pieces of luggage. As hundreds of fans swarmed onto Redfern railway station as her train approached, she was escorted away from the platform to the Australia Hotel where hundreds more excited fans wanted to catch a glimpse of the renowned celebrity.