The four-star Clarion Hotel, Sligo has been brought to market by Savills with a guide price of €7m.
With value in the Dublin market drying up, regional hotels such as the Clarion are becoming increasingly attractive to investors.
Bidders are likely to include Dalata, which currently operates the hotel.
Earlier this month, Dalata bought the Clarion Hotel in Cork for €35.1m in a record deal for the Cork market.
The 162-room hotel, which has been in operation on the site of the former St Columba’s psychiatric hospital in the centre of Sligo town since 2005, is being sold by Savills on behalf of receiver Aiden Murphy of Crowe Horwath.
The hotel was placed in receivership in 2012.