With an asking price of $12 million, the Unanderra Hotel comes with 21 poker machine entitlements, 14 accommodation rooms and two-self contained units.

The sale is being managed by Ben McDonald of CB Richard Ellis, who is also handling the sale of the Harp Hotel.

Mr McDonald said the Harp Hotel, with 16 poker machine entitlements and 22 fully serviced rooms, had a $15 million price tag.

He said the present climate was a difficult one for hotels, but it wasn't limited to the Illawarra.

"What is happening with pubs in Wollongong is happening across the rest of regional NSW," Mr McDonald said.

The advertisement for Port Kembla's Commercial Hotel remains on the CBRE website, however Demtor Pty Ltd's Raz Dema said the hotel was under contract.

The Commercial Hotel, purchased by Demtor for $3 million in 2005, and the Harp Hotel, purchased in 2004 for $4.5 million, are two of a number of holdings being offloaded by Mr Dema and his business partners, Lou Ristov and Dino Tonegato.

In 2006, the three men held interests in at least 11 establishments in the Illawarra through their companies RDL and Demtor.

Last year, Demtor sold the Berkeley Hotel for $4.1 million, just two years after buying it for $1.5 million.

Mr Dema said the hotel sales were a sign of the times.

"With the credit squeeze on we are just looking to offload a few assets."

Other South Coast hotels on the market include the recently renovated Bridge Hotel in Nowra, with an asking price of $5 million; Ulladulla's Marlin Hotel, which is on offer for $1,995,000; and Five Islands Brewery, Wollongong, for $1.35 million.