The story of South Africa’s historic hotels has become a tale of two starkly different futures.
While a handful of grand properties have been rescued by private investment and transformed into world-class destinations, many others are quietly crumbling - trapped in endless bureaucratic tender loops, ruined by ownership disputes, or abandoned to urban decay.
The 132-year-old Royal Hotel in Pilgrim’s Rest is the latest example, with its closure highlighting the wider challenges facing historic hospitality properties across the country.
The Royal Hotel’s unresolved future
The Royal Hotel has been at the centre of a dispute since September 2022, when Kruger on Sabie took over its lease from the Mpumalanga Regional Training Trust.
The operator initially absorbed all 50 employees but later found the staffing structure financially unsustainable. An attempt to introduce a shift work system sparked a dispute with workers, and the operator eventually vacated the property.
The hotel had already been under financial pressure. The Covid-19 pandemic dealt another blow to tourism, while subsequent efforts to secure a new operator have failed.
According to a progress report from the Mpumalanga Department of Public Works, Roads and Transport, bids received for the hotel were deemed non-responsive because they did not meet the tender requirements. The Bid Adjudication Committee subsequently recommended that the tender be advertised again.
For Pilgrim’s Rest, the consequences extend beyond one hotel.
The former gold mining town relies heavily on tourism and already has limited accommodation. The Royal Hotel’s closure therefore affects where visitors can stay as well as the businesses and people who depend on tourism spending.
Teboho Sekaledi, Mpumalanga DA spokesperson on Public Works, Roads and Transport, said the delays were affecting the local economy.
“The prolonged delays in leasing the historic Royal Hotel in Pilgrim’s Rest have caused harm to the local tourism and economic development of the small town,” Sekaledi said.
He said concerns around administrative backlogs, failed tenant agreements and repeated tender processes had been raised since 2016.
“Mpumalanga Tourism cannot afford to lose this hotel,” he said.
The Royal Hotel itself is part of what makes Pilgrim’s Rest significant. Built by prospector George Edward Roy during the gold rush era, the property became closely associated with the town’s history.
One of its most recognisable features is the Church Bar. The building originally served as a Roman Catholic chapel in Lourenço Marques, now Maputo. After the congregation outgrew it, they dismantled the structure, transported it by ox wagon to Pilgrim’s Rest, and rebuilt it as a bar.
The hotel eventually expanded across 10 buildings, retaining features including brass beds, antique washstands and clawfoot baths. Its history reflects a period when hotels were central to the social and economic life of mining towns.
That history, however, does not pay for maintenance, staff or operations.
When landmarks fall through the cracks
The Royal Hotel is not an isolated case. Johannesburg’s Carlton Hotel was once a major symbol of the city’s economic growth. Opened in 1972 as part of the Carlton Centre complex, the 31-storey hotel had 600 rooms and attracted international visitors, celebrities and political figures.
Its fortunes changed as Johannesburg’s CBD declined and businesses increasingly moved towards Sandton. The hotel tower closed in the late 1990s and has remained largely unused.
The Carlton’s story demonstrates another challenge facing historic hotels. A property can remain architecturally significant while the commercial environment around it changes dramatically.
In Cape Town, the Ritz Hotel in Sea Point followed a different path. The 23-storey building became a prominent part of the Atlantic Seaboard skyline and was known for its revolving restaurant, which offered panoramic views of the city and ocean. Its bars and nightlife also made it a recognised social destination.
The hotel closed in 2018 and subsequently became associated with deterioration, legal disputes, vandalism and concerns around building hijacking.
Yet its history continued to give it value. In 2025, OKU Hotels acquired the property for R368 million with plans to restore it rather than demolish the existing structure. The project is intended to preserve elements of the building while introducing a new hospitality concept.
Piers Bradley, chief executive officer of OKU Hotels, said the company wanted to respect the property's past while giving it a new purpose.
“We’re excited to restore this iconic property with care and creativity, bringing OKU’s laidback luxury and soulful design to Cape Town,” Bradley said.
When heritage gets a second life
Not every historic hotel has been left behind. Across South Africa, some properties have found ways to preserve their history while adapting to what travellers expect today.
In Glencairn, Tintswalo Summer House offers a recent example. The property began in 1904 as the Glencairn Southern Right Hotel before becoming a well-known local pub and community gathering place. Over the years, its role changed, but its connection to the area remained.
After acquiring the property in 2014, the Tintswalo Collection spent more than a decade researching and restoring the building. It reopened in April 2026 as a 12-suite boutique hotel overlooking False Bay.
In the Drakensberg, Champagne Castle Hotel has followed a different route. What began as a mountain farmhouse in 1928 developed into a long-running tourism property beneath Champagne Castle, one of the region’s best-known peaks.
Its history is closely linked to the growth of mountain tourism in South Africa, when travellers sought opportunities to escape city life through hiking, fishing and other outdoor activities.
Mount Grace Hotel and Spa in Magaliesburg also demonstrates how an established property can adapt to changing expectations.
The hotel began in 1981 when entrepreneur Chippy Brand bought a struggling local inn with plans to turn it into a Christian children’s campsite. The cost of restoring the property led to a change in direction, and Mount Grace opened in 1983 with 22 rooms.
Over time, it became known for its country house setting, spa and Sunday lunches. Its secluded location also gave it a role in South Africa’s transition to democracy, hosting the Mount Grace Consultations during the 1990s.
lutho.pasiya@nationalmg.co.za