TOMORROW could mark the day the music died at the Annandale Hotel in Sydney's inner west, a well-known live music venue.

It is understood the hotel has been sold and the final exchange of documents is set to occur tomorrow.

The agent in charge of the sale Knight Frank’s Mike Wheatley said today he was unsure whether the new owner would continue with live music.

The identity of the buyer is a closely guarded secret in the hotel industry and will not be revealed until later this week when the receiver announces the sale.

Hotel industry sources said today the hotel had sold to a residential buyer who would close the hotel and use the upstairs rooms, but Mr Wheatley says he believes a publican has bought the hotel.

Mr Wheatley said there were “contractual issues” that needed to be sorted out, “I don’t know what’s going to happen to the live music, certainly it’s going to be a pub”.

Mr Wheatley said there was more than one buyer interested in purchasing the hotel.

The hotel has been in receivership for three months since St George bank foreclosed on the hotel which was owned by brothers Matt Rule and Daniel Rule.

Losing the battle in Annandale

Receivers Ferrier Hodgson have been handling the sale of the hotel which was weighed down by a massive $3 million mortgage.

The hotel was valued at more than $6 million last year when it was refinanced by the Rule brothers but hotel values have slumped.

Expressions of interest closed on May 14.

The Ferrier Hodgson partner handling the sale, Morgan Kelly, today said a sale was imminent.

Earlier this month Leichhardt mayor Darcy Byrne wrote to Ferrier Hodgson asking that receivers sell the hotel to buyers who would continue it as a live music venue.

In February there was a last-ditch attempt to save the hotel, with retired football player Eric Grothe Jr and the Madden twins from Good Charlotte calling on locals to save the hotel.

Prior to receivership the hotel had been up for sale for more than a year through agent Adam Spencer-Carr of Spencer Carr Properties.

At the time of the receivership co-owner Dan Rule said Ferrier Hodgson told him they wanted to keep live music at the hotel.

The Rule brothers bought the hotel for $2.1 million in November 1998.

Originally published as Legendary rock venue's fate sealed