The well-known Cornwallis Hotel off the A140 in Brome is to close on Sunday.
The Grade II-listed property is being put up for sale by its owners, a large property and investment company.
It is currently run by management company Bespoke Hotels.
The Diss Express understands that most of the 14 staff have either been relocated into new jobs within Bespoke Hotels, or have found employment elsewhere.
The property will be on the market some time next week with Diss agents TW Gaze, with offers invited at around £995,000.
Handling the sale is TW Gaze’s licensed trade specialist, Alan Crowest.
He said that the hotel issimply not of a large enough scale to be workable for the large investment companies.
“With 16 rooms, it probably doesn’t fit the typical ‘management’ model,” said Mr Crowest.
“It needs, in my view, experienced, entrepreneurial hoteliers. I can see it working as a luxury 5-star restaurant with rooms, a bit like Galton Blackiston at Morston Hall (in north Norfolk).”
The hotel will be remembered by some when run successfully by the Hasted family in the 1980s, and then called Oaksmere Country House.
The 16th Century dower house also has 17.5 acres of grounds. It has recorded a turnover of £500,000 before VAT.
The Diss Express phoned the hotel this week, and general manger Emma Dall confirmed the hotel would be closing on Sunday, but would only add that it was for refurbishment works and said customers had been told.
Enquiries can be make to TW Gaze on 01379 650468.