Stayed here last Sunday for our anniversary. Managed to secure a room for about AU$160. The Grace has a lovely ambience. There's a nice historic feel, and an Irish pub within the same building.
Location wise it's excellent - minutes to most CBD locations such as the museum, shops, cinemas etc. Room itself was clean, the bathroom was modern, clean and you could swing a well nourished cat in it. The staff weren't falling over themselves to be friendly, but were cordial and more than happy to mind our bags for the day.
Our one miss was breakfast in the cafe - we felt like a good old cheese/tomato/onion toasted sandwich, which admittedly wasn't on the menu but you'd think it would be within the powers of such a place. They said it was no trouble, and out came two of the strangest toasted sandwiches we'd seen. They mustn't have had a hotplate or sandwich maker, it looked like they'd thrown it together and put it in an oven or something. Huge chunks of onion had to be dug out of the little buggers to make them edible. Yep, we asked for onion but not the whole onion! And they billed us $10 each for them! Too much competition in the city to fall for that one twice.
Anyway, that was the only negative of a really nice visit, so I recommend Grace highly.