[7] A robbery occurred at the pub on the 27 August 1887 in the late evening, in which the burglar gained access to the bedroom of the licensee, Duncan McMillan, and stole £100 worth of items, including a watch, a gold pin with diamonds and bluestone, other jewellery and a Webley Revolver, before escaping through a window.

[8][9][10] On 4 October, John Charles Vernon was arrested in connection with the robbery, and it was found that in his possession was a pawn ticket for a pin matching the description of that stolen from the hotel and which was later identified as belonging to McMillan.

Before his arrest in connection with the Carlton Inn robbery, Vernon had been acquitted of a charge of stealing a cash box from the Niagara Hotel in Lonsdale Street.

[8][9][10] In 1933, architects Thomas Watts & Sons designed a new rear addition valued at £500 including new kitchen, and alterations to the front bar.

Additional bedrooms and relocation of the kitchen (which had previously been a billiard room), were undertaken by Harry J. Johnston with designs by architect J.

Little designed further alterations, including single-storey sections for laundry, toilets, garage and fuel store, replacing former outbuildings.

The site is included in the City of Melbourne Heritage Overlay (HO85), where it is described as: historically significant as one of the earliest extant buildings in this part of Carlton, which has undergone substantial change since the time of its initial phase of construction in 1857.

[23] Wynne eventually scrapped initial plans to try and compel Shaqiri and Kutlesovsky to have the pub rebuilt, instead allowing them to build a 12-storey tower on the site,[16] for which he received harsh criticism in the media.

[25] Crikey's Guy Rundle lamented that the pair were likely to make "millions" from the deal they had struck to build a 12-story tower on the site.

[27] A wooden scale replica of the Carlton Inn's facade was included as part of a public artwork by Sean Lynch.

[28] Following the demolition, Kutlesovski and Shaqiri removed asbestos from the site and dumped it on another location, near a school and residential buildings, endangering the people in the vicinity.

[36] [28] A planning application for a modern three-storey pub, designed by Six Degrees, with two basement levels was lodged for the site in late 2022.

A spokesman for the pair said the new building will not be used as a pub and the owners have had discussions with The Salvation Army about using it for a food bank or community centre.