In 1858, seeing a need for accommodation in the village, Gillies built a hotel, the first of six he would ultimately own during his life. Naming it the Wimmera Hotel, it was near his smithy on the south-eastern corner of Firebrace and Wilson streets.

In 1873, and changing careers entirely, Gillies sold his smithy to the Bradshaws (who converted it into a carriage works) and built Horsham's first flour mill, taking up almost the entire block between Roberts Ave and Pynsent, Firebrace and Urquhart streets, incidentally acquiring his second hotel, the Horsham Inn, in the process.

1873 was the year land selection was starting to boom. Selectors streamed into the Horsham area looking to take up cheap land for farming. Hotels were popping up all along Wilson St and Gillies could see another opportunity on the western edge of town on the road to Natimuk. The Western Hotel was built by Gillies and first licensed on September 23, 1875.

An 1879 map shows a fairly basic, wooden, U-shaped structure consisting of a wing facing Wilson St and two wings at each end leading south. Behind were stables and a horse paddock for guests' mounts.

The licensee, Thomas Fletcher changed the name of the hotel to the Cricketers Arms, possibly when he secured a licence to serve beer at the Horsham Cricket Ground in December 1876. He became insolvent in mid-1877 and Gillies arranged for Alexander Knowles to take over the licence. Knowles changed the name back to the Western Hotel and conducted a reasonably successful business. However, the arrival of the railway in Horsham in early 1879 meant that there were opportunities at the north end of town.

Gillies already owned land north of Baillie Street. About 1860 he'd purchased allotments 6 & 7 in an area that later would become known as "Church Hill". In 1864 he sold the south-west corner of allotment 6 to the Shire Council to create Dimboola Rd and what would become May Park.

With the passing trade on Dimboola Rd and the arrival of the railway, Gillies elected to relocate the Western Hotel to allotment 6 in December 1879. He renamed it the Victoria Hotel.

The move from Wilson Street to Dimboola Road proved a great success. About 1880 May and Millar moved their foundry and machinery business from Pynsent St to part of allotment 7 facing Dimboola Road. A ready supply of thirsty, dusty workers next door and being the closest hotel to the railway station meant the hotel business boomed.

Alexander Knowles remained as licensee until he died in January 1882. He was only 45. His wife, Mary, took over the licence. Mary sold the licence in 1883 and the hotel passed through a series of licensees until Joseph Jeffery took it on in 1886. Jeffery proved an exceptional hotelier, purchasing the freehold of the hotel from Gillies in 1890.

In her "Memories of Church Hill" (1973), Katie Sawyer describes the Victoria Hotel at this time as "a rather rambling kind of place. Some small bedrooms were built along the east fence and further along were the servants' quarters. On the opposite side (west) were some rooms and the large kitchen, then the double gate (to admit buggies etc) and the stables." Katie also recalled that from about 1885 to 1920 the short section of Dimboola Road in front of the hotel and foundry was named "Victoria Parade".

In 1922 trouble was on the horizon for the ageing Victoria Hotel. The temperance movement was at its peak and special licence deprivation sittings of the Licensing Court were convened to determine which hotels were to go. The Stawell Brewing Company, which owned the hotel, had already contracted James Irwin, an Ararat architect, to design a new hotel in brick. The Victoria Hotel survived the hearings and the two-storey hotel was completed in November 1924.

Eighteen months afterwards the Stawell Brewing company offered it for sale at auction. The successful bidder, Mrs E Copley of Stawell, paid £12,750 (equivalent to about $4M today).

Some famous sportspeople became licensees at "The Vic". Albert Boromeo became licensee in 1927. He had just retired from football in Melbourne and played on the Horsham team to good effect. Unfortunately, he was less careful about conducting his hotel and was frequently before the courts for trading out of hours.

Frank Hooper took over the licence in 1953. He was a former champion cyclist. In the ten years he held the licence he promoted cycling and contributed prizes to races in the Wimmera district.

From 1937 the Ballarat Brewing Company owned the freehold of the hotel. They sold to a private investor in 1999. The present owners are John and Sally Brennan. The current licensee is Mark Fitterer.