Built in the heady days of the Victorian gold rush of the 1850s, the hotel’s history of visitors is littered with royalty, prime ministers and celebrities including a 1896 visit by American novelist Mark Twain who described it as “the pride of Ballarat”.

The hotel’s current owners John and Mary Finning, who bought the property in 1999, have decided to put the hotel on the market after owning it for two decades. They will retain their other hotel interest, The Settlement Hotel in Cranbourne.

At a glance:

• Craig’s Hotel in Lydiard Street is expected to sell for more than $13 million with the EIO closing at 4pm on 5 December
• The grand Victorian building offers 37 boutique rooms, the acclaimed The Gallery restaurant, café, lounge and bar
• Considered one of Victoria’s most elegant hotels, the business also provides income generated by 45 EGMs in tightly held market

JLL’s Hotels and Hospitality Vice-President Will Connolly is the exclusive agent for the sale.

He said that expressions of interest open on November 6, the day after Melbourne Cup day, and close at 4pm on 5 December and that there was early interest in excess of $13 million.

“This really is a hotel like no other,” Connolly said.

“In those early days it would have been the epicentre of Victoria as it was one of the first major buildings in Ballarat.

“The buyer will be purchasing a brand rather than a hotel – perhaps someone who is looking for a flagship property for their portfolio.

“Not only does Craig’s Royal Hotel offer arguably Victoria’s most elegant boutique accommodation, but it’s also a business that provides a foundation of gaming income generated by 45 EGMs, which in a market as tightly held as Victoria’s will help draw a wide range of buyer profile.”

The hotel has played an integral role in Ballarat’s history and cultural life since being built in 1853.

As the first hotel in Ballarat to be granted a liquor license, it became an epicentre of life in the gold rush with events at the hotel entwined in Australian history.

The Melbourne Racing Club was formed there and the 1855 Royal Commission into the Eureka Stockade uprising was held at the hotel.

Even Dame Nellie Melba performed from Craig’s balcony and Mark Twain stayed several nights while on a speaking world tour.

While the hotel was originally named The Ballarat, it quickly became Bath’s Hotel, after its original owner Thomas Bath, a butcher born in Cornwall, England. Bath sold the property in 1857 to Walter Craig and the hotel changed its name to Craig’s.

In the mid-1800s Queen Victoria’s second son, Prince Alfred was the first member of the Royal Family to visit Ballarat. He made Craig’s his headquarters and the hotel changed its name to Craig’s Royal Hotel.

The hotel has undergone several additions, modifications and renovations during its 166-year history, although none more so than those undertaken by Mr Finning who oversaw a multi-million-dollar redevelopment from 2003 to 2010.

The interior was transformed to create 37 boutique rooms, the highly acclaimed restaurant The Gallery and sophisticated new function rooms.

“We are really proud of taking what was a pretty run down pub and turning it into the destination that it currently is,” Mr Finning said.

“We will be sad to see it go but it is time someone else enjoy it as much as we have.”

Mr Finning and his wife have owned the hotel for 20 years – one of the longest in the hotel’s history and seven more than Walter Craig himself.

The hotel offers a diverse collection of restaurants, bars, function rooms and lounges in a magnificent package of Victorian grandeur.

Among assets is the multi-award-winning The Gallery restaurant, as well as Craig’s Café, the Foyer Lounge, Craig’s Bar and 45 electronic gaming machines.