Mr Whiter said a Sydney-based investor, who also owns property in Eden, had indicated he was prepared to pay $350,000 for the iconic Imlay Street building.

It is understood the offer was made as recently as a week ago.

The investor's offer is conditional on money being raised by the community and via government grants to guarantee the viability of the restoration work.

Mr Whiter said that while the investor's money would secure the building, before any purchase could proceed, money needed to be raised to progress the renovations.

"We now think that pooling funds and divesting ownership is the best way to achieve this outcome," Mr Whiter said.

"We hereby call for interested parties to make contact with expressions of interest for this investment," he said.

Mr Whiter said the state government had recently released about $14 million in heritage grants.

"This project easily fits the criteria for the state money," he said.

"But we need to prove community willingness and support in order for our funding application to succeed.

"Approaches have been made to (the hotel's owner) Rodney Thompson by the group.

"Mr Thompson has agreed in principle to the monetary figure and proposed a time-frame," he said.  

The hotel is ear-marked for demolition to make way for a new supermarket.

Any new proposal would require a fresh DA being submitted to Bega Valley Shire Council.

There is concern that the hotel is increasingly falling in to a state of disrepair, with more windows vandalised last weekend.