That is how members of the Creswick community are describing the derelict British Hotel following another graffiti attack.

Creswick resident and RSL secretary Phil Carter said the historic hotel had been allowed to deteriorate to the point where it had become an embarrassment for the community.

The hotel has been "tagged" by vandals in recent weeks.

Mr Carter said the graffiti had not been removed much to the annoyance of many Creswick residents.

"It lowers the whole standard of the street. It is right opposite the tourist centre, so everybody who comes here sees it and every one comments about it," Mr Carter said.

"What message does it send (about Creswick)? It is a beautiful old building and everyone would love to see it put to good use.

"But if you just leave it like that, it will only get worse. Apparently inside has been absolutely trashed. It is terrible for that to happen to such a iconic building in Creswick."

Mr Carter said Creswick did not generally have a graffiti problem but the hotel had become an epicentre for it in the town.

The building is privately owned but Mr Carter said the Hepburn Shire should be doing more to clean it up.

Creswick ward councillor Don Henderson said the council had done as much as it could.

"It's private property," Cr Henderson said. "People think because it's on the main street it is council matter. All the council has responsibility for is to make sure it is safe. And we have dealt with that with spiders under the sill and a sign hanging over the footpath. Apart from making sure it is structurally safe we can't do much about it.

"The council has had discussion with the agents about it being an eyesore. Apart from that, what can we do?"

Cr Henderson said there had been similar graffiti at Calembeen Park but it was cleaned up by the council. He agreed with Mr Carter that, generally speaking, Creswick did not have graffiti problem.

Caine Real Estate is managing the potential sale or lease of the building. Caine Real Estate principal Damian Caine said he was unable to identify the owners for privacy reasons but confirmed the building was on the market for the right price.

He said the current condition of the building was not something he could comment on.

"It is up for sale if there is a reasonable offer and the owners would also be happy to consider leasing it to the right person or group as long as they have a viable business plan," Mr Caine said. "It would have to be something (the owners) would consider has a good chance of success.

"The issue is it is an old building and it needs someone with the resources to renovate it. I'd compare it with the Provincial Hotel on Lydiard Street in Ballarat. I would say it is potentially one of the best locations in Creswick, which is currently booming."