The Malmsbury Racecourse Hotel, established in 1860, was a prominent establishment catering to travelers en route to the nearby racecourse. Managed by James Thornton, it was one of the first hotels encountered by those journeying from Kyneton. The hotel was destroyed by fire in 1869 and subsequently rebuilt. In 1893, it was among six Malmsbury hotels closed due to "local option" regulations. Today, the red-brick ruins stand as a historical landmark, adorned with signs directing visitors to local attractions and cautioning to "keep out."
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