A local private investor has purchased St Kilda’s Tolarno Hotel for circa $6 million after 30 years of ownership by James Fagan and Bernard Corser.

Located at 42 Fitzroy Street, the 37-room hotel sits on a 968sqm site and comprises a restaurant and bar, operated by the likes of Chefs Iain Hewitson and Guy Grossi, as well as a function room.

The hotel sale was subject to an existing lease to a recognised hotel owner.

CBRE’s Scott Callow and Nathan Mufale brokered the deal on behalf of the vendors.

The hotel was founded by Mirka and Georges Mara in the 1960’s and stands as a testament to the city's vibrant cultural heritage.

The hotel offers a unique blend of history and notoriety with the feature of valuable collections of original artworks, including murals by renowned Melbourne artist Mirka Mora, showcasing her evolution from the 1960's.

“Tolarno Hotel is immediately recognisable as a part of St Kilda’s history. I am pleased that the buyer of the hotel has history in the area and will continue its legacy as a Fitzroy St landmark,” Mr Callow said.

“With a Commercial 1 zone designation, the property provides income from the current hotel tenant with potential for growth through the restaurant, bar, function rooms and plans for additional level compromising nine hotel rooms.”