In 1872 it was partially levelled and then used intermittently as a store for timber, coal, leather goods or marble (either in sheds or open air) along with a series of small stables.

The shop at 27 George Street was conceived from the outset as separate premises, used on the ground floor variously as a light refreshment room, a mixed business and cafe.

From 1963–1989 Marine Specimens Pty Ltd ran a Shell Shop, providing a library and reading area on the first floor from 1968 and a meeting place for the Malacological Society.

The simplicity of the hotel's overall form, materials and detailing is relieved only by the restrained modelling of the cornice, a little decoration in the roof-deck's iron balustrade and at street level, by the richly coloured glazed ceramic tile dado.

A three-storey shop (No 27), originally completely self contained, with its own shopfront, attached kitchen and rear yard, is at the south end.

Internally, the building has undergone some quite significant unsympathetic alterations, notably in the Bar and associated Lounge, and the shop has been more recently linked through to the hotel.

The Hotel is located on the wedge-shaped block that marks the junction of George Street with Gloucester Walk, and the building is L-shaped, with the shop having a wider footprint and with small rear yards.

The Mercantile Hotel has local historical significance as one of the more intact survivors of late-19th and early-20th century Rocks pubs, having operated continuously since its opening in 1914 and retaining much of its original character, fabric and functions.

It also has associations with Tooth & Co. Ltd., one of NSW's important early brewing companies, and more generally with the practice of tied hotels under which the licensee operated until 1976.

[1] The Mercantile Hotel adds to the historic, aesthetic and social richness of The Rocks Conservation Area which is of both local and national heritage significance.

The existing building is one of the more intact survivors of The Rocks' late 19th and early 20th century Pubs, associated with one of NSW's most important brewing companies, Tooth & Co. Ltd., and with the practice of tied hotels.

Aesthetically, the building is an interesting example of Federation Free Style architecture, with its competently handled forms and massing enriched by the decorative detailing of its tiled dado, etched glass to the main doors, awning supports and parapet balustrade.

It has earlier associations with locals and returning visitors through the Shell Shop which occupied part of the building for 30 years, and through the Malacological Society which met upstairs.

Its structure and finishes provide information on early 20th century building techniques, albeit the archaeological potential of the site is generally low.