The Grand Hotel is a typical Silent Hill environment with lots of dilapidated rooms and dark corridors to explore. The main task is to find three postcards for a mysterious woman hiding in 301. First of all you actually need to get inside the building, which requires the next melee weapon the fire axe. It's a pretty good heavy weapon that proves effective against a few monsters and is also required for hacking through those boarded up doors I've been seeing throughout the game. The only real puzzle in this area is the re-wiring one, everything else is about navigation and exploration. There isn't a dark version of this building either although you do enter the nightmare world just before the boss. Sepulcher the first boss, has two forms. I didn't have too much trouble with the first one but the second kicked my ass a bit because I should have been focusing on striking the arms more. I probably used too many health drinks defeating it but I won first try so.I took the loss rather than reloading. It makes for better blind run footage at least. The fight is at 59:57 You also meet a new enemy type in this area the Needler, they're kinda like four legged spiders with metal legs, pretty nasty and probably best tackled by shooting but I use the axe on most of them here, except the ones on the lift.