The Victoria Hotel has been servicing the community for more than 115 years, and has been put on the market after the sudden passing in August this year of publican Michael Foster.

Daughter Jessica Foster said the freehold was purchased by her dad in 2012 after a long-standing relationship with the hotel which were his lodgings when he first arrived in Warrnambool in 2000.

Mr Foster was a well-known figure within Warrnambool and Koroit, particularly within the local horse racing, farming, hotel and business communities.

"In an unconventional bridge to retirement Michael transitioned into the role of publican and hotel manager in 2016," Ms Foster said.

"In this role he developed warm and longstanding relationships with many people and maintained the hotel's traditional roots."

After his passing, Mr Foster was remembered by many for his humour, his generous goodwill and his involvement in many aspects of community life.

His wife and children have pulled together since his passing to keep the hotel operating.

Ms Foster said they looked forward to seeing the next chapter unfold for the historic prominent piece of Warrnambool real estate.

CRE Brokers' Rohan Pertzel, who is overseeing the sale, said the property had already attracted interest from across the state and even as far as New South Wales.

"Being in the position where it is in Warrnambool, it's certainly very appealing to a lot of different buyers, whether they're developers or hoteliers," Mr Pertzel said.

He said the expected price range for the property was $3.75 million to $4 million.

The sale of the freehold and business includes the hotel, bottle shop, 16 backpacker-style accommodation rooms upstairs and the use of the car park.

It also includes two shops - one is currently used by a financial business and the other was recently vacated by the Optus shop.

Mr Pertzel said before the sale they had spoken to larger corporate operations to see if there was any interest in the site.

"A freehold pub with a liquor licence on that sort of land could be appealing to different parties," he said.

Mr Pertzel said the site had the potential to be redeveloped for more motel accommodation in the CBD, if the buyer was able to also purchase neighbouring properties.

"It would be very appealing to a big motel operator like a Mercure or one of those type of properties who could build a large motel right in the heart of Warrnambool," he said.

Mr Pertzel said there was "absolutely" a need for more motels in Warrnambool with two on Raglan Parade recently razed to make way for new JB Hi-Fi and Officeworks stores.

He said he had sold six motels in Warrnambool in the past 12 months.

"It's a really good motel town, Warrnambool," he said.

The Vic Hotel property is 1218 square-metres excluding the common use area out the back.

Mr Pertzel said the car park - which covered 1269 square-metres - was owned by the hotel but had a common use area with neighbouring businesses.

It goes up for action at 1pm on February 9.

The Victoria Hotel was established on the prominent city site in 1905.

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