The original hotel was moved from Castle Rock to Mossburn by George Beer in expectation of the arrival of the railway in 1885. The present building was constructed in May 1923 after the previous hotel on the site was destroyed by fire. It was rebuilt in brick and a second story added around 1935. The old smithy on the property was used as a temporary bar during the erection of the new hotel. The Hotel was built next to the railhead which serviced the local area and was originally planned to extend to Mararoa. The branch line from Lumsden to Mossburn was only 17 kilometres long, but it had an extraordinary effect on the life and well being of the community. The line provided quick access to the outside world for people and produce. It took a very long time to complete due to the periodic depression of the 1880s. The line was started in 1880 but only reached Mossburn on 21 January 1887. Passenger service was discontinued on the 4th October 1937. After this the Hotel was used mainly to house contractors working in the surrounding area.

Photo taken on 13 February 1928 by W.H. Blaikie

The Mossburn Serpentine Works used the railway to freight serpentine (this product was used to stop super phosphate from hardening) to Ravensdown, Seadown, or Hornby for further processing. The Railway was officially closed by the Government on the 11 December 1982. Extensive renovations where carried out in 1987 with provisions for a restaurant and lounge bar. With fully carpeted bars and sit-down drinking facilities, the contrast is striking between that and the tiny wooden building that was transported here a 125 years ago. Only the embossed name 'RAILWAY HOTEL' which remains on the facade of the present day building provides a link between then and now.

Quite possibly the MOSSBURN RAILWAY HOTEL is the oldest business in Mossburn to operate from it's original site.