Speaking on Wednesday, Cr Taylor said the sale showed enormous confidence in investment in Ballarat.

"This is an iconic hotel in the middle of the CBD and what it shows is there are people that want to invest in Ballarat, and from that location it shows there is great positivity around the the CBD," Cr Taylor said.

"For Ballarat, as we've seen every weekend, we have something from the tourism point of view.

"Craig's is just one of those locations and this is a really great vote of confidence for the city and I'm sure there will be other opportunities right across the city and in fact just outside the city area in the future."

EARLIER: BALLARAT'S most historic pub has been purchased by a major statewide hotel consortium.

The Black Rhino Group consortium has been announced as the new owners of Craig's Royal Hotel, which hit the market for the first time this century since 1999 in November last year.

The group paid $12 million for the venue, The Courier confirmed on Wednesday morning.

The group operates venues across much of Victoria, specialising in gaming, wagering, family bistros, sports bars, retail liquor, entertainment and accommodation.

It operates 14 hotels and one nightclub across metropolitan Melbourne and country Victoria including the Railway Club Hotel in Seymour and the Victoria Hotel in Shepparton.

Pubs owned in Melbourne include the Richmond Social in Swan St, the Hampton Park Tavern, the Ivanhoe Hotel, the Royal Oak Hotel in Cheltenham and the Waterloo Cup Hotel in Moonee Ponds.

JLL's Hotels and Hospitality Vice-President Will Connolly, who brokered the deal, said bids were received from a wide range of parties.

"As you can imagine there was a lot of interest for a hotel with such a rich history and an extensive multi-million-dollar restoration," Mr Connolly said.

"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."

The hotel's owners John and Mary Finning, who bought the property in 1999, will retain their other hotel interest, The Settlement hotel in Cranbourne.

"It's hard to see it go, but I am sure Dave and his team at the Black Rhino Group will enjoy it as much as we did," Mr Finning said.

Mr Finning said family commitments, which he would not go into specific details about, had forced his decision - something he admitted he had wrestled with over a number of months.

"The reason I decided to invest in Craig's Royal is I see the Ballarat region being among the strongest tourist regions in the state," Mr Finning said.

"I had been spending four to five days a week in Ballarat since the renovation but my current situation means I'm not there as often as I used to be.

"We have a wonderful team, the business is flourishing and now a purchaser can continue the business to grow.

"When I took it on, there was a likelihood it might have been converted into apartments. In hospitality you never stop improving and investing. But this is now one that is fully redeveloped inside and a new owner can walk straight into."

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