The Melbourne Hotel stands on the corner of Caersalem Terrace and Station Road, next door to the Railway Tavern (which was once called the Railway Inn).

The old Melbourne Inn was built circa 1865, about the same time as the Apple Tree, Oddfellows Inn, and the Railway Hotel. The original inn was not as grand as the present mock-Tudor style edifice which was designed by Llanelli architect William Griffiths circa 1913. The Melbourne Hotel was built on the site of the Melbourne Inn and Oddfellows Inn in Station Road, opposite the Station Hotel (later named the Miramar).

The Railway Tavern alongside was known as the Railway Hotel and witnessed the violent riots that occurred during the railway strike of 1911.

The Melbourne Inn and Oddfellows Inn, circa 1912