Red Lion Hotel residence, Windsor fetches $4.85 million

An 1860's solid brick hotel, converted into a family home in Melbourne's Windsor fetched $4.85 million at weekend auction, almost $600,000 over reserve.

Bidding opened at $3.6 million with six bidders.

Previously the Red Lion Hotel, 39 Duke Street has tall ceilings and rich period features in its warehouse style contemporary living space.

The property has five bedrooms, three bathrooms and a leafy atrium with indoor garden.

The most spectacular feature of the property is the 250 sqm secluded rooftop garden which has a large gas heated pool, sauna and orchard with views of the city skyline.

The property has been in the family for around 60 years and hasn't once been traded.

RT Edgar's expectation was for the property to fetch $3.5 million at its March 19 auction.