Historic 132-year-old hotel standing completely empty in South Africa due to a worker dispute
A historic 132-year-old hotel in one of South Africa’s best-known tourist towns has remained closed for years following a dispute with workers.
Now, the provincial government is struggling to find a suitable operator for the property due to the tender compliance requirements advertised.
The Royal Hotel in Pilgrim’s Rest dates back to 1894, when prospector George Edward Roy built the establishment as a gathering place for gold diggers and prospectors.
The building was constructed using corrugated iron, timber framing, and materials designed to withstand the harsh conditions of the mining frontier.
The hotel later became an important part of the town’s history. In 1913, it was bought by Scotsman John McIntyre, whose family became affectionately known locally as the “Royal Family”.
When Pilgrim’s Rest was declared a National Monument in 1986, the Royal Hotel was preserved with much of its historic character intact.
Its Victorian décor, brass beds, washstands, and clawfoot bathtubs remain part of the attraction for visitors interested in the town’s gold-mining past.
However, the hotel has now been closed for years, which has hit Pilgrim’s Rest as it was an important source of tourism activity and employment.
The state-owned Mpumalanga Regional Training Trust (MRTT) managed the hotel from 2012.
While the arrangement initially worked, mounting financial losses, made worse by the collapse in tourism during the Covid-19 pandemic, pushed the establishment towards closure.
In September 2022, private operator Kruger on Sabie took over the running of the hotel after the MRTT’s lease ended. The operator initially absorbed all 50 employees at the establishment.
However, Kruger on Sabie subsequently found that it could not afford to maintain the existing staffing arrangement and sought to introduce a shift-work system.
This resulted in a dispute with employees and ultimately forced the operator to vacate the premises until the dispute could be resolved.
The dispute remains unresolved, leaving the Royal Hotel shuttered and without an operating business.
Problems with finding a new operator
The continued closure has raised concerns in the Mpumalanga Provincial Legislature, with member Teboho Sekaledi warning that the failure to reopen the establishment is hurting tourism and economic development in the small town.
“The extended closure of the Royal Hotel, Pilgrim’s Rest, left many people jobless while the province has the third highest rate of unemployment,” Sekaledi said.
Pilgrim’s Rest is located along Mpumalanga’s Panorama Route and is surrounded by some of the province’s major tourist attractions.
Visitors can combine a trip to the historic mining town with attractions such as God’s Window, Bourke’s Luck Potholes and the Blyde River Canyon.
Sekaledi said the hotel’s prolonged closure was particularly damaging because Pilgrim’s Rest is already an established heritage and tourism destination.
“Mpumalanga Tourism cannot afford to lose this hotel. The town of Pilgrim’s Rest and Royal Hotel Pilgrim’s Rest are part of Mpumalanga’s heritage,” he said.
A progress report submitted to the Portfolio Committee on Public Works, Roads and Transport highlighted the difficulties in finding a new operator.
According to the report, bids received for the operationalisation of the Royal Hotel were found to be non-responsive because they did not comply with the requirements set out in the advertised tender.
The Bid Adjudication Committee subsequently recommended that the tender be advertised again.
The department has acknowledged that Pilgrim’s Rest’s status as a heritage and tourist attraction has created a shortage of accommodation in the town.
This makes the operation of the Royal Hotel particularly important. Sekaledi said the provincial government needed to do more to conserve Pilgrim’s Rest and ensure that its historic properties contribute to the local economy.
“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,” he said.
He added that heritage sites played an important role in preserving local history while also supporting tourism and economic development.
“Heritage sites promote a culture of learning the history of a town and its people, as it draws tourists from all walks of life,” Sekaledi said.
Royal Hotel in Pilgrim’s Rest photos
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