The McArthur House Hotel opens, 1874

During the age of the steamboats and stage coaches, it took much longer to get anywhere than it does today—though it was much faster and easier to transport large quantities of goods than the era of paddling and walking through the woods of previous generations. Because journeys of more than 100 miles might take days to accomplish, travellers needed places to stay along the way. One of the first buildings in many new communities was an inn or tavern—in Fenelon Falls, it had been operated by Robert Jameson and James Wallis.

Once the railway was completed to Lindsay in 1857, with co-ordinating steamship service, long-distance travel for pleasure became practical. Most of these long-distance travellers arrived on a steamship, and some would be continuing on to other communities, especially up the Cameron Road (a similar route to present-day Highway 35, through Rosedale, Coboconk and Norland). When they arrived at Fenelon Falls many needed a place to stay. Then, there was no lock to facilitate navigation from Cameron to Sturgeon Lake, so the community had wharves above and below the falls. For travellers arriving at the Lower Wharf (now the docks below Lloyd Kelly Parkette) in 1871, one of the first buildings they would see was the Quebec and Ottawa House Hotel, which John Swanton operated as a tenant.

In late March 1874, Peter Begin purchased the lease, brought in new furnishings and the liquor that would be needed to operate (hotels often served the double purpose of being the local watering hole.) On April 16, 1874, the Quebec and Ottawa House burned and by June, Joseph McArthur removed the rubble, as he prepared to build a new brick hotel.

The McArthur House Hotel opened shortly before Christmas that year, operated on a lease to Joseph’s brother, Alexander: "The house is very conveniently situated, being close to the steamboat wharf and in the centre of the business portion of the village, a location which will be appreciated by commercial men. The building is 66 x 72 feet and has a kitchen attached of 18 x 24 feet which is provided with every convenience. On the first floor there are four sitting rooms neatly furnished; the office is in the front, and the bar is situated in the back part of the main building. The stairway leading to the second flat is very much admired, it being of superior construction, the railing of which was made by a well-known manufacturer in Toronto. On the first flat there are three large parlours, all furnished in first-class style. A feature worth noticing is the harmonic piano provided for the accommodation of guests, which will not fail to be appreciated. The second flat contains a number of bed rooms, which together with those on the third flat number forty-two, they are all large and airy, and are furnished with oak and walnut furniture. The stable and sheds are commodious, and the house has all the requisites for a first class hotel."

In the 1880s, as the Fenelon Falls canal was being excavated, there was a great quantity of stone right in front of the McArthur House, that needed to be disposed of. Some of this stone was used to build a livery stable in connection with the McArthur House Hotel. In 1886, a third storey was added to accommodate more guests at the hotel. When telephone came to the community, the McArthur House was one of the first buildings served by this new utility.

Following Alexander McArthur, other tenants operated the McArthur House. After Joseph died in 1892, John Aldous moved to Fenelon Falls and took over the hotel in 1893, becoming its proprietor. By 1904, it was described as a "handsome three-story building and is fitted with an immense dining room, good sample rooms [for travelling merchants to display samples of their goods], a number of public and private parlors, and has first-class accommodation for fully 70 guests. In addition to offering first class accommodation for the tourist and commercial trade, it is supplied with large and splendidly kept stone stables, which supply every convenience for travelers driving in, or the farming community."

John Aldous also owned Little Hector, "the fastest little horse in Canada." One day, a boarder at the McArthur House Hotel, could not afford to pay for his stay, but offered Aldous a colt instead. Aldous was interested in harness racing and entered Little Hector in a competition at the Fenelon Fair, which he won with ease. As he travelled to fairs around the district, Little Hector showed his heels to the other contestants at every race. With a little training for horse and driver, Aldous was soon travelling to compete across Canada and the United States. By the end of the 1890s, Little Hector was routinely winning races on both sides of the border. He became a national celebrity, and even had a brand of cigars named after him.

Aldous owned the hotel until he died in 1936, and his family would continue to operate the property until 1947. A later description of the building explained, that "the main floor consisted of a large bar next to Townley’s; sample room for travellers; a pool room; a large dining room and kitchen, plus a card room. On the corner of the building was the Post Office for many years with W.B. Brandon as postmaster."

Though Fenelon Falls was once home to multiple hotels, after the Second World War, the market for accommodations was changing. With the advent of automobiles, travel became much faster and more flexible. Instead of staying in the villages, many visitors enjoyed spending summer at waterfront lodges. By then, travel by steamship was becoming a distant memory, and even the railway was noticeably in decline. The grand Victorian hotels, like the McArthur House, were superseded by many more, though smaller motels and lodges, that accommodated the ever-increasing number of visitors to the region. The McArthur House Hotel was reincarnated as Canadian Tire, and today is the block containing Subway. Though the third storey has been removed and much of the building extensively modified, it is still recognizable as the old McArthur House hotel, a century and a half after it was built.

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