The 110-year-old Colbinabbin Country Hotel will undergo major re-development and preservation works from March.
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It will be the first major works undertaken in the history of the hotel with the first stage to include a new kitchen, toilets and dining function area.
An outdoor area adjacent to the beer garden will also be developed.
Hotel manager Julie Price said there had always been plans to update the hotel since she, Mary Ann Morgan and Dr Barry Dawson purchased the pub in February last year.
"We have always wanted to upgrade things, especially the kitchen and toilets which are important parts of the pub," she said.
Plans to update the bar and restore the upstairs accommodation will happen in later stages.
Every effort will be made to preserve the facade and the unique character of the building.
"We've got to be careful we don't do away with (the pub's) character," Ms Price said.
"We want to try and keep that country, traditional feel around it but at the same time it can be more functional and user friendly.
"It's still an old building and the builders have got to do all sorts of tricky things (in the renovation)."
For the small Colbinabbin community, the redevelopment works are expected to have positive impacts on the town.
Colbinabbin won a grant through the state government's Pick My Project program to artworks on their silos, similar to what other towns have done.
"Once news of the silo art project came in, we thought the town will get busier and we should gear up for it," Ms Price said.
"They're talking about that possibly being launched in October. With that comes better signage to the town and that's something we would try to hook in to. There will be a flow on affect."
Ms Price said hotel staff will do their best to continue the same level of hospitality during renovations but acknowledge there will be some disruptions.
"It's the locals that keep the doors open and we've got to keep the beer flowing. It's important to do that," she said.
"We have to give a vote of thanks to the community. They've taken on board everything we're doing and seem to be enjoying it."
Since taking over last year, Mr Price and her team have introduced a number of events, live music and twilight markets.
"We've been pretty happy with it and tried a lot of different things to see what works," she said.
"Octolbo (a one-day music festival) was popular and we have live music once a week.
"We don't have much of a passing trade but that's something we hope to change."
People will be able to visit the hotel for the last time before works begin on Sunday, March 10, between 2pm and 6pm.
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