Budget boarding house Gatwick Hotel in Melbourne on the market

The Gatwick Hotel in Melbourne’s St Kilda is on the market for the first time in more than 50 years, with the expression of interest campaign closing March 1.

The hotel on 34 Fitzroy Street was built in 1938 and is currently being used as a boarding house. It is in an area zoned Commercial 1.

The property’s current owners, twin sisters Rose Banks and Yvette Kelly, have been running the 64-room hotel since the 1980’s and have now decided to retire.

A documentary 'The Saints of St Kilda’ was recently made in which the owners opened up about the boarding house and its inhabitants.

The hotel comprises of a three level-building plus a basement with a gross floor area of 2,532 sqm. Built to the boundaries, the site is nearly 789 sqm and has three street frontages. The property has retained most of its original features and has been kept true to its original floor plan.

The listing agents for the property are Lemon Baxter’s Jonathan Walls and Richard Hutton. There have been reports of $11 million expectations.

“The Gatwick Hotel is an icon in St Kilda. The property is less than 5 km from the CBD and has immediate proximity to St Kilda beach, restaurants and generates high traffic, particularly from tourists,” said Jonathan Walls.

“This site presents an opportunity to house a boutique hotel, head office or residential conversion subject to council approval.”

St Kilda Community Housing chief executive John Enticott said he understood the vendors had set a 12-month settlement date, which would secure residents' housing until early 2017.