In what could be one of the city’s richest property transactions in history, the iconic Pavilion Hotel has quietly been listed for sale and agents say they have fielded many inquiries – including from Chinese and Singaporean investors.

It comes as the city confronts generational change in its pub scene, with several hotels for sale as new players promise a shake-up.

Selling agent Nic Simarro, of Savills Hotels Australia, said the Pavilion had the potential to fetch $8 million.

Mr Simarro said negotiations had boiled down to three parties, who were “aggressively” bargaining for the Kincaid Street icon.

It is understood one of the potential buyers includes a Wagga-based hotelier.

“This is probably one of the best regional hotels that I’ve ever been in – and I’ve been in a lot,” Mr Simarro said. “There is no capital expenditure required, many of the rooms are of a five-star standard and there’s that area where the restaurant sits in, which is just remarkable.”

The current owner, Peter McIntyre, said he had sold all his other assets in the city and the Pavilion was the last remaining.

“I love Wagga, I was born in Wagga – but my family takes me elsewhere,” Mr McIntyre said from New York. 

“Early indications are very positive for the sale.”

The Pavilion has held several brands over its life and was formerly an All Seasons. But if it is sold, it will remain the Mantra because there is a long-term lease in place.

The agent said the lease is worth about $700,000 per year.

Wagga valuer Christopher Egan said investors would place a high priority on annual revenue from the site.

“There needs to be that continual income stream,” he said. “It’s a big factor and if it is a blue chip tenant, that’s looked favourably upon as well. 

“They need to make sure that $700,000 is at market level … it has to be a certain percentage of turnover because there is no point having whole profits go to rent.”

But Mr Egan said the $8 million would fall short of the high water mark achieved with the sale of the Country Comfort at the corner of Morgan and Tarcutta streets (the current Mecure) in 2013.

The Pavilion was constructed in the 1980s. It was later renovated about a decade ago, when its current white canvas roof was installed.