The hotel, St Kilda's destination of last resort for the homeless and drug-addicted, is to be bought by Channel Nine for around $15 million for renovators show The Block.

But with only two weeks until The Gatwick closes down, a small group of residents remain unwilling - so far - to accept a place to stay as part of a government-sponsored relocation program.

Those that remain in the hotel are largely those with significant mental health or dependency issues. None of those approached wanted to talk about their circumstances.

When the eviction of residents was confirmed last month, around 70 people were living at The Gatwick.

As these residents moved out, the doors to their rooms were boarded up.

"It's to stop squatters going in - it is the standard procedure," said John Endicott, the general manager of St Kilda Community Housing, which the Andrews government has commissioned to find "safe and stable housing" for Gatwick residents.

Traders in St Kilda's downtrodden Fitzroy Street say they are seeing fewer problems with violence and drugs as Gatwick residents go elsewhere.

"People aren't coming in trying to steal stuff as often," said Bernard Corr, who has run a Fitzroy Street newsagency for four years. "There are fewer problems [and] it would be a remarkable coincidence if it wasn't The Gatwick [closing]."

Sisters Rose Banks and Yvette Kelly have run The Gatwick for 46 years, taking over ownership from their mother in 1999.

Taking The Age through The Gatwick on Wednesday, Ms Banks said they were looking after the last few tenants as best they could as closure loomed.

She said selling the building for The Block was not yet final: "Nothing is a done deal."

Ms Kelly said she and her sister were dismayed at their portrayal in the media as heartless slum lords. "People say such horrible things, but we've bowed to the pressure to shut the doors."

She said the pressure to shut had come from "shop traders, the housing minister, the police, and the wealthy people [of St Kilda]".

Both pointed out that the government had in April spent $15 million establishing a gay pride centre across the road from The Gatwick. "The government could have bought us; they bought that stupid building instead," Ms Banks said.

Asked if they would make a big profit when the building sold, Ms Kelly declined to answer. She said the hotel's running costs were high.

"To keep the doors open costs us $12,000 a week. We'd be lucky to [have revenue of] $12,000 a week," she said. "The government was saving money by us doing this - and we got the blame for anything that went wrong."

Housing Minister Martin Foley said the government had funded St Kilda Community Housing as the lead organisation to ensure all tenants were supported as they left The Gatwick.

"We will continue to support the remaining tenants and those who have been recently relocated into safe and secure housing," she said.

The government argues that the support provided to the Gatwick residents is part of a $799 million investment in housing and homelessness.