Redlynch was established in the 1880s, when the Cairns to Kuranda Railway was being built following the route of the Barron Valley Gorge. An early hotel in Redlynch was called the Terminus Hotel, and was sustained by the railway workers, farmers and canecutters. A photograph of the hotel was taken in c.1890. Reference was made to the Redlynch Hotel in the 1904 publication of 'Pugh's Almanac' and the proprietor was identified as R. Rowe. The current hotel was built between 1925 and 1926 for Mrs Norah Down 'to cope with the urgent local, visiting and passing trade in Redlynch and important sugar centre.' It was designed by the architect Richard Hill. The hotel's current name, The Red Beret, referred to an owner from the 1990s, Max Gorman, who was an ex-paratrooper.