The hotel was originally opened as the Family Tourist Hotel in 1902 and in 1909 became the Grand Tourist Hotel. In late 1917, it was one of a number of district hotels to lose its licence and it remained vacant. 

The two-storey brick building was constructed on high stone foundations, had a tiled roof and 10 foot wide balconies and verandahs around two sides. It had a large billiard room, kitchens and dining rooms. 

On the grounds were an orchard, vegetable garden and chicken yards.

In May 1918, the building was inspected and approved by the military medical authorities and Sydney Red Cross representatives. A three year lease on the property was signed at 260 pounds per year. 

The work to convert the hotel into a convalescent home was carried out by voluntary labour. Partitions were taken down between some rooms to transform them into wards.

Patients started to fill the wards from August 1, 1918, however the home was officially opened by the governor-general Sir Ronald Munro Ferguson on August 24, 1918. 

It was a gala occasion, with several thousand people in attendance.

It was described as one of the largest establishments for the treatment of convalescent soldiers in NSW.  

Red Cross members throughout the region offered their support by sewing pyjamas, cooking cakes and scones, and donating food.

The home was operated by voluntary staff consisting of commandant, house aids and cooks.  

Initially, there were 42 men under the care of matron Reynolds and her staff, soon after though it was taken over by matron Emmott.

A welfare committee was also formed to provide outings for the men to various locations around the region.

The home did not escape the influenza epidemic of January 1919, with some of the patients, and almost all the staff becoming unwell. It was thought at one time, the home would have to close. No more soldiers were accepted, however, by July 1919 the home was clear of the disease and resumed receiving patients. 

The home closed on August 18, 1920, by which time 909 wounded and sick soldiers had passed through its doors. As a send off for the patients, the Nowra Red Cross women arranged a euchre party, dance and concert at the home beforehand.