In April 1861 two new hotel licences were granted at Hay: the Caledonian Hotel (Thomas E. Blewett and George Dorward) and the Argyle Hotel (Thomas Simpson).  The two hotels were located side by side in Lachlan Street.  During 1862 the Argyle closed its doors, and was offered for sale.  In September 1865 George Maiden briefly re-opened it as the Royal Mail Hotel.  In February 1866, Christopher Ledwidge, landlord of the Caledonian Hotel since 1864, purchased the Royal Mail and incorporated the two into one hotel. The Caledonian Hotel was badly damaged by fire in 2006 and demolished the following year.