The hotel, formally the Parkside Hotel, has operated since 1863, and will have its last trading day on June 17.
Hotel operator Kirsten Clarkson said it was time for her to "raise the white flag and fall on the sword" on the South Rd, Caversham premises.
"I’ve given 25 years of my life to this pub. I’ll walk away with no money and possibly debt.
"But I’ve come to terms with that; I’m leaving with things money can’t buy."
She was the longest-serving leaseholder of the hotel since 1939.
The closure stemmed from several problems including investor issues, high expenses and a low number of patrons.
"It’s been a very slow death.
"When you’re selling $13 jugs and making 50c off them, and the government wants $1, it’s not great."
The hotel once had thousands walking through its doors.
Now, it has about 60 diehard patrons.
Despite the difficult time, she still had stories to tell with a smile on her face.
"The Carisbrook Hotel was once the Parkside Hotel before 1984 — before the infamous scandal."
The scandal involved a prostitution ring, which allegedly included police and judges, which she said tainted the Parkside name.
She began her journey at the hotel in 1996 as a server before moving up to manager in 2004.
In 2009, she purchased the lease and built a name for herself.
She publicly announced the closure on social media to give people a chance to say goodbye to the "old girl".
"Since I announced the closure, I’ve seen the best in humanity.
"I woke up the morning after and received 200 messages from wonderful people."
She would spend the coming weeks packing up and getting ready for a chattels auction to be held on June 18.
"I’m young enough and wise enough to know this isn’t the end.
"It’s the beginning of something new."
