Known as Mackay’s Hotel after owner Alexander Mackay, the hotel was opened June 1878 on the corner of Commercial Road and Chapel Street. The first known licensee was Alexander Mackay. Mackay’s was erected during the boom years in Port Augusta where between 1878 and 1883 twelve hotels were built. Of two stories the 40-room stone and Portland cement rendered building stood opposite the post and Telegraph Office on the corner of Commercial Road and Mackay Street. It cost £7,000 to build.