I didn't actually stay at The Grand (a misnomer if ever there was one) but I attempted, unsuccessfully, to dine there.
We were on Commercial Street at 5pm and saw a blackboard that had been placed in the hotel entrance which stated bar meals were available from 5.30pm. We went in, intending to have a drink until the kitchen opened. As soon as the entrance door shut behind us, we were enveloped in the gloomy darkness of the place. We walked upstairs and into the deserted lounge bar. A barman appeared and we asked if we could get a drink. A stunned look crossed his face, as though this was a ludicrous question that hadn't been covered in Bar Keeping 101. He consulted another member of staff then turned to us. 'No', was his reply, 'the bar doesn't open until 6pm'. 'But', we countered, 'your sign downstairs says you serve food from 5.30'. His eyes glazed over as he assimilated this complex data, then with the look of a man who has just solved a particularly tricky quantum physics problem, he exclaimed, 'Ah, that must be an old sign!'. We took the hint and left, crossed the street and had a warm welcome and good food at Oslas resturant. Avoid, avoid, avoid.

OK,
Lerwick is not a gastronomic paradise, however the Grand is expensive for what is offered. The Hotel has no clearly identifiable name outside (never a good sign) and is shabby with staff obviously hired in-between other jobs.
Dinner was a surprise. The surprise being that what was served was not exactly what was described on the menu. As an example, grilled salmon arrived as poached salmon. When queried, staff looked up the menu before offering apologies and removing the plate. The plate returned again within minutes - as the same poached salmon, flashed under a grill.
Red and white wines arrived at the same temperature. When queried, the waiting staff could not see the problem but suggested an ice bucket if we wanted wine any cooler.

The hotel doesnt have any real competition in Lerwick and maybe feels it can get away with indifference. It can't and needs new management or a fresh approach from the owners.

May once have been grand but not now. A bit smelly when you come in the back entrance (smoke and toilets) and dated inside. My room had three single beds in it, was dingy nd felt cold due to the lack of atmosphere. The seagulls (no fault of the hotel) were the wake up call at 0400 each morning. I'm a seasoned traveller and don't go anywhere without my ear plugs so this wasn't a great problem for me but it could be for you! Best thisg is that it's in the middke of town and not far from Monty's Bistro which serves a great meal. Try the Shetland lamb!

If you want to get a good night's sleep while traveling, don't stay here!!!

I'm staying in room 326, and every night, there is a large crowd of people standing in the lane talking loudly under my window. Apparantly this is the smoking section, since Britian has just recently outlawed smoking indoors in pubs and restaurants. The crowd under my window is loud every night--you can even hear them over the steady loud music from the pub, which is quite loud itself. I feel as though my bed is actually in the pub. When I called the front desk, the staff pretty much said, "Oh, well. Sorry," and did nothing to help.

The noise ends some nights at 11, but on Fridays and Saturdays, the pub is open until 2, so don't expect to get to sleep before about 2:30 when the noise finally dies down. Of course, if you want to hang out at the pub every night, this is the place for you!