Hundreds of thousands of visitors take in the delights of the pretty Tasmanian town of Sheffield every year, but accommodation there is scarce.

Now an opportunity exists for an astute investor to own a lovely, historic and highly profitable hotel in one of Tasmania’s most iconic tourist towns – a truly stunning part of the world.

The grand Sheffield Hotel, in the shadow of mighty Mount Roland, is situated in a small dairy farming community 30 kilometres from Devonport and an hour’s drive from Launceston and Cradle Mountain.

The historic hotel does a roaring trade and the present owners are finally moving on after more than 40 years. It is on the market for $3.5m with annual net profit of $452,000.

The Sheffield Hotel includes a public bar, bottle-shop, two dining rooms, a function room, five accommodation rooms, a manager’s residence, office, front and rear beer gardens, a large car park and an adjoining vacant commercial building.

It has a long history of successful trading.

“It’s one of the best country pubs in Tasmania,” said Knight Frank’s John Blacklow.

“Sheffield is such a lovely place. It’s known as the town of murals because of all the beautiful artwork throughout the town which is a big driver of tourist traffic.

“The pub is a wonderful hotel, situated on 4017 sqm and there is surplus land at the back that someone could develop further to have more accommodation.

“The freehold owner has been there for 42 years and he has leased out the property for the last 20. Now that the tenant is retiring in October, the owner has decided to sell the freehold.

“We’re offering vacant possession after October 26 this year.

“The figures are good, there is an excellent diversification of trade, and the new owners will be getting a very pleasant, profitable place to work in a beautiful setting. That’s why the tenant and owner have both been there so long.”

With more than 140 murals, Sheffield has become an outdoor art gallery famous throughout Tasmania for the quality of the work.

Sheffield's Mural House is full of indoor murals inspired by Aboriginal art. And the murals are not just on the walls. Every building front in town is covered by glorious paintings. Even the town’s letterboxes are works of art.

More murals are added every year and Sheffield now attracts more than 200,000 tourists annually.

Artists also flock to the sublime setting to work in studios that are open to the public.

The International Mural Fest started in 2003 and takes place every April. Artists pour into Sheffield to create works for the popular competition. The nine best murals are left on display throughout the year until the next festival.

Nature lovers also see Sheffield as a haven for wildlife and flora. Mount Roland and the nearby conservation area and Lake Barrington provide a wonderful backdrop for bushwalks and hikes.

And all those visitors need somewhere to stay, eat and drink.