Iconic 132-year-old hotel in a historic South African town closed due to mismanagement

The historic Royal Hotel in Pilgrim’s Rest has remained closed for years due to delays in finding a suitable bidder to operate the establishment.

The hotel dates back to 1894, when prospector George Edward Roy built it to serve as a primary gathering point for gold diggers and prospectors.

The hotel was built using corrugated iron, timber framing, and prefabricated elements that could survive rugged frontier conditions.

In 1913, it was bought by Scotsman John McIntyre, whose family was affectionately known locally as the Royal Family.

When Pilgrim’s Rest was declared a National Monument in 1986, the Royal Hotel was preserved with its Victorian décor, brass beds, washstands, and clawfoot bathtubs.

The state-owned Mpumalanga Regional Training Trust (MRTT) has managed the hotel since 2012, which worked well initially.

However, financial losses exacerbated by the COVID-19 tourism slump brought the establishment to the brink of closure.

In September 2022, private operator Kruger on Sabie took over the hotel’s operation after the Mpumalanga Regional Training Trust’s lease ended.

It initially absorbed all 50 employees, but then realised it could not afford this and tried to introduce a shift-work system.

However, this led to a dispute, and Kruger on Sabie was forced to vacate the premises until the dispute was resolved. It has not been resolved to date.

This left the Royal Hotel in Pilgrim’s Rest shuttered and unmanaged, which has been a hit to the town.

Teboho Sekaledi, a member of the Mpumalanga Provincial Legislature, raised concerns that the iconic hotel remains empty.

He said that the prolonged delay in leasing the Royal Hotel in Pilgrim’s Rest has harmed local tourism and the small town’s economic development.

“The extended closure of the Royal Hotel, Pilgrim’s Rest, left many people jobless while the province has the third highest rate of unemployment,” he said.

Problems with leasing the Royal Hotel in Pilgrim’s Rest

A Progress Report submitted to the Portfolio Committee on Public Works, Roads and Transport, the Department highlighted some of the problems.

This report showed that the bids received for the operationalisation of the Royal Hotel were non-responsive with respect to compliance with the advertised tender.

They also added that the Bid Adjudication Committee (BAC) recommended re-advertising the tender.

The department has acknowledged that, due to the town’s status as a heritage and tourist attraction, there is a shortage of accommodation.

This was partly because they still have not found a suitable bidder to operate the historic Royal Hotel Pilgrims Rest.

“Mpumalanga Tourism cannot afford to lose this hotel. The town of Pilgrims Rest and Royal Hotel Pilgrims Rest are part of Mpumalanga’s heritage,” he said.

“This historic 132-year-old hotel draws thousands of tourists to Pilgrim’s Rest each year, and the province cannot afford to let it decline.”

Sekaledi said that the Mpumalanga Provincial Government needs to conserve Pilgrim’s Rest as a heritage site.

“Heritage sites promote a culture of learning the history of a town and its people, as it draws tourists from all walks of life,” he said.

He added that these National Heritage sites also promote economic development through tourism.

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Royal Hotel in Pilgrim’s Rest photos

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