The junior Guelph Royals arose when the Guelph Biltmore Mad Hatters were sold in 1960, and the new ownership renamed the team. Emile Francis was head coach of the Royals for the 1960–61 OHA season and the 1961–62 OHA season.
Guelph won the Hamilton Spectator Trophy during the 1960–61 OHA season, finishing 1st overall. The Royals' Rod Gilbert led the OHA in goals scored with 54, points scored with 103, and Jean Ratelle led the league in assists with 61. Gilbert won Eddie Powers Memorial Trophy with the most goals in the league, and was also awarded the Red Tilson Trophy as the most outstanding player. In the playoffs, the Royals lost in the league finals to the Toronto St. Michael's Majors, 4 games to 2 with a tie.
Many players graduated from junior hockey after the 1960–61 OHA season, and the Royals did not recover their previous form. After two declining seasons the franchise was in financial trouble again. At the end of the 1962–63 OHA season, the team moved to nearby Kitchener, Ontario, becoming the Kitchener Rangers, taking the name of the NHL parent club.