The hotel's owners, John and Mary Finning, who brought the 1850s-built landmark in 1999 have decided to put the "the pride of Ballarat" as Mark Twain called it, on the market.

And according to the agent selling the building, there is already interest in excess of $13 million.

"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."

The ownership of Craig's by The Finnings is seven years longer than Walter Craig himself who bought the property in 1857 before his untimely death in 1870.

READ MORE: Pub With Two Names up for sale again

READ MORE: Miners Tavern on the market

READ MORE: Bluestone on the market

The legend of Craig's horse Nimblefoot winning the 1870 Melbourne Cup remain embossed on the walls of the hotel. Craig dreamed the horse won the race but he wouldn't be there to see it, he died two months before the race.

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

Expressions of interest will open on November 6 and close at 4pm on December 5.

"This really is a hotel like no other," Mr 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. It was the place to be seen.

"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 offer arguably Victoria's most elegant boutique accommodation, but it 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 licence it quickly became the centre of Ballarat to cope with the influx of gold prospectors looking to find their fortune.

The Melbourne Racing Club was formed there, as was the Ballarat Horticultural Society. In 1855 the Royal Commission into the Eureka Stockade uprising was held at the hotel.

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

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.

Have you signed up to The Courier's daily newsletter and breaking news emails? You can register below and make sure you are up to date with everything that's happening in Ballarat.