When Hans Schack in 1661 takes over Møgeltønderhus the area between the castle and the church was nothing more than fields, – on former sketches of maps called ‘Slotsmarken’.
Around 1680 a wide strip of land was spun off, now the northern part of Slotsgaden. This with the intention of providing accommodation for the officers and craftsmen who could not stay on the castle grounds.
In 1683 seven houses in the street are being mentioned, including 3 built by the Count’s shire. Among these were the Slotskro, the residence of the gardener who in 1688 got his licence to administer the inn.
In the first decades number of housings only slowly rose despite the shire´s promise of tax relief to traders who would settle down in Slotsgaden. But in the early 1700s the number of settlements grew so that Slotsgaden around 1750 appears, as we know it today with lime avenue and coated with stone bridge.
In 1861 a large fire ravaged Slotsgaden. A dozen houses at the eastern end of the street, from Slotskroen and well down the street were consumed by the flames.
On the land where the fire roamed the inn and a travel stable (Rejsestalden) were rebuilt, as they currently appear in the exterior. From 1720 and onwards a large number of people are listed as owners of Slotskroen, until it in 1907 again was transferred to the shire. In 1978 Rejsestalden underwent a radical alteration to a restaurant and got a direct connection to the Slotskroen via a low intermediate building.
In 1978 Slotskroen as part of the Schackenborg Estate is passed on to the crown. In 1998 14 rooms in the hotel houses Slotsgade 25 – built in 1745, passed on to the shire in 1965 – and Slotsgade 27 – built in 1744, passed on to the shire in 1893 – were renovated, as well as the restaurant, conference room and toilet facilities got repaired and restored.
In 2001 an additional 11 rooms got established: 6 rooms in Slotsgaden 40 – built in 1861 by private builders on the the land where the fire in 1861 roamed (the site is in private hands until it in 1974 again is acquired by the shire) – and 5 rooms in the Inn itself. In addition, a new kitchen and service facilities behind Slotskro are built, the banquet room in Rejsestalden is enlarged and the garden established.