The Sangoma Retreat in the Blue Mountains is on the market and is expected to be a bellwether for other sales of boutique hotels and leisure property assets.
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Investors can also buy the property as a residential purchase, as it offers living premises, or a manager's residence, according to the selling agent, Paul Kapiris, a negotiator at CBRE Hotels.
A value of about $6 million has been attributed to the asset and it is said that interest is being shown from hotel investors, high net-worth groups, residential/holiday purchasers, and foreign buyers.
Mr Kapiris said the property charges between $500-$1100 a night and is often booked out for months in advance. The vendors are Michael Podles and Zenga Butler, who are moving to new interests.
"The high-end boutique hotel market is dominated by high net-worth investors," Mr Kapiris said.
"It is tightly-held and has hit the radar for investors who want to be in the sector, but not in the realm of the chain-style city-based hotels. The improvement in domestic tourism has also led to a rise in inquiries from cashed-up investors."
According to the latest Hotels.com Hotel Price IndexTM, the average hotel rate in Australia rose 4 per cent to $177 per night in the first half of 2014 when compared with the first half of 2013.
Some recent sales in the boutique sector have been transacted by Graham and Jude Turner, who own Spicer's Group, and recently bought the Victoria Court Hotel in Victoria Street and the adjoining terrace.
Businessman John Singleton owns Bells at Killcare and Pretty Beach House, while his Magic Millions partner, Gerry Harvey, owns the Byron at Byron.
Mr Kapiris said private investor, Michael Hope, bought Tower Estate through CBRE Hotels to convert to his own private residence, while further afield, Bob Oatley owns Qualia, on Hamilton Island.
Mr Kapiris said the Sangoma Retreat includes five stand-alone suites, which have potential for further development and, a large, open main house with communal dining.
"Properties that offer development potential are also being viewed by a wide range of buyers, who see the boutique sector as one of growth, particularly to tap into the weekend-away holiday market," Mr Kapiris said.
"With the Australian dollar weaker and people working longer hours, the chance to grab a long weekend is being taken, rather than the extended overseas holidays, which has turned investors' attention to the smaller hotel market."
