The Mercantile Hotel operates continuously in its original function since its opening in 1914 and retains much of its original character and fabric. The Hotel as an establishment has significant associations with the early maritime and mercantile activity in The Rocks and the harbour rowing regattas, as it replaced the earlier Mercantile Rowing Club Hotel.
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. The stone-walled excavation on the western boundary is a physical reminder of the original character of the site and The Rocks.