The Royal Hotel was built in 1883, around the same time as the Birdsville Hotel and Courthouse. It was constructed from dehydrated gypsum mixed with sand and water to create a bonding agent for the stonework. This style of masonry construction spread throughout central Australia as a way of controlling extreme temperatures and compensated for the lack of locally available timber.
At the time, the Royal Hotel was the second of three hotels built in Birdsville and operated as such for the next 40 years. The Australian Inland Mission leased the building for use as the hospital from 1923 to 1937, after which it was leased as a private residence for many years. Materials for the conversion from a hotel to a hospital, were brought to Birdsville on a string of 75 camels.
The first Traeger Pedal Radio Transmission from Birdsville took place here in 1922.
Since 1978 the property has been listed for preservation and restoration with the Register of National Estate.
Mrs E Morton had the first baby born in Birdsville's new hospital on 21 May 1924. The Morton family continue to reside in the Diamantina Shire.
