Little is known about the Grosvenor Before 1541, the year in which the Grosvenor like so many other sucsessfull Coaching Inns at the time, increased its capacity by incoorporating the Cock Inn and the Star Inn. The Grosvenor was fully rebuilt at the beginning of the 16th centuary, and by the 18th centuary the Grosvenor was the town's principle posting Inn.

Under its old name the 'Red Lion' the Grosvenor is mentioned throughout the 17th and 18th centuries as the leading hostlery in the town, and in the early 19th century the Grosvenor's Marquises and later Dukes of Westminster rebuilt it as we see it today - and gave it their name.

Those were the great coaching days, but by the middle of the 19th century, the last post-horse had echoed over the commons, but the old Red Lion doxed on, until, at the turn of the century people were once again woken, not by the hoof this time, but by the sound of a horn as the first motor car rumbled into the courtyard, bringing with it prosperity as it did to so many country towns.

Throughout the early 1900's the Grosvenor thrived, it has its own garage with inspection pit and there were facilities for cleaning and hiring cars. However on the 24th February 1927, a serious fire raged through the ball room at the rear of the hotel, as a result the town of Shaftesbury was given its first motorised Fire Engine.

Much has changed here at the Grosvenor in the last 50 years or so. Having changed hands a number of times many famous names including Trust House Forte, Old English Inns and others have all owned the hotel. More recently, in 2002 the Grosvenor was aquired by two entrepreneurs which with thier direct and hands on approach have transformed the Grosvenor into a friendly and fun place to stay with an atmosphere envied by any family run business.