Being pass holders , we do receive a discount, just not enough to make it worth the price of staying here. Though after booking a room @ the org. Disneyland Hotel, we received a call a few days later. We were give a upgrade to the Grand.
We had stayed her (childless) in the past. And this was our daughter's (4yr old) first stay @ a Disney Hotel. She was amazed by it's size & beauty. She loved the giant fireplace. And as always enjoyed the Story Tellers Breakfast. Though she thought it was odd that it wasn't more "Mickey-ish". This is true I have heard other kids state the same.
As far as the rooms go, I was impressed to see they now have large plasma tvs.The robes are wonderful, you will want to purchase one in the gift shop.The turn down service is wonderful. Front desk is very thoughtful. When realizing it was my husband's Birthday we had ballons, candy, bday badge , w/ in moments of checking in.
Food, Story Tellers Cafe, can add up quickly for large family. But the food is wonderful. Chip & Dale are so friendly.For snacks 7 quick bites, we love the White Water Cafe, it's hidden toward the pool area. Prices are affordable & food is tasty.
Would I pay the usual $300 & up to stay here, on my budget, not really. As a upgrade or gift, you beat.I think most kid's would be just as happy @ the other two properties.

We recently stayed here due to the great reviews. The travel agent we booked through didn't have this hotel in their brochure, but we requested it and they were able to book as part of our package.
We are so glad we made the request - on arrival we were told that we had been upgraded to a pool view, which was a lovely suprise.
Our room was large, very clean and very comfortable. The bathroom and sink areas looked brand new and the decor was superb. We had a view of not only the pool, but some of the rides in the California Adventure Park.
The hotel lobby was 'larger than life' with an enormous fireplace. All of the staff were polite, helpful, friendly and smiled a lot.
We really liked the way you walked straight into Downtown Disney for meals and could get directly into the California Adventure park.
The pools were warm and well staffed - they even bring drinks to your lounger!
We would stay here again and would recommend the Storyteller's Cafe.

We stayed at the Grande Californian for 5 days. This is our 4th visit to Disneyland and this is one of the nicer hotels that I've stayed at in the area. Found the Foyey to be breathtaking and massive. Being right at the California Adventure entrance was definitely a plus and it was a short walk to the Disneyland entrance. I loved being right on the strip of all the neat stores and restaurants that Disneyland has to offer. Beautiful at night. My only complaint would be the price, the room decor. and room size. I would recommend booking the hotel directly as I'm sure it would be way cheaper. It was really neat to see the lead singer for Blink 182 staying there! My teens thought that was really sweet. All in all I would recommend it!

We have stayed at the Grand Californian about 10 times since it opened in 2001. It definitely has it benefits., at a cost of course.

We have a 3 year old who needs a nap everyday. We have stayed offsite and had to use the Anaheim Rapid transit (ART) bus but the 20 minute schedule is not dependable. We have waited over an hour. This doesn't work with a 3 year old.

We have stayed at the Disneyland hotel and the distance from the park entrance or using the monorail can take a while. Also we had serious noise issues everynight at 1am from the DtD foot traffic.

Summary: We will continue staying the GCH and use the AP discounts (when they are available) until my daughter is older and then we might try Embassy suits south..