Fridae

The Albury Hotel, famous for its drag-queen floorshows has been put on the market, according to the Sydney Morning Herald.

Expected to fetch $7 million to $8 million, the hotel located on Oxford Street is one of Sydney's gay landmarks and is also a focal point of the annual Gay and Lesbian Mardi Gras for years.

The 62-year-old hotel has hosted celebrities such as Michael Hutchence, Cher, Freddie Mercury, Fran Drescher, Peter Allen and members of the bands Guns N' Roses and Pearl Jam.

It is believed that Hugo Weaving's character in The Adventures of Priscilla, Queen of the Desert was inspired by one of the hotel's drag queens, Cindy Pastel.

Ms Nanette Theakstone and Mr Leigh Jennings, who have been joint-owners for 30 years and 21 years of late nights told the paper that although they will be sad to leave - they need a break.

Mr Jennings added that he said he hoped the shows would continue, although that would be up to the new owners.

Mr Gerry Quinlan, of the selling agent Manenti Quinlan & Associates, said demand for inner-city pubs was strong as investors are scrambling to get a foothold in the poker machine industry. He added that owners are reluctant to sell as there is currently a freeze on poker machine licences.

The two-storey Albury has two bars and a gaming lounge on the ground floor.

It goes to auction on July 5.