Fire tore through The Mill Hotel in Alveley on 18 May, causing most of the building's roof to collapse.
The hotel, formerly a popular wedding venue, closed unexpectedly last September following financial problems of its owner, Elysian Care.
It is being auctioned by Cottons auctioneers on behalf of the receivers.
The Birmingham auctioneers are holding the sale at Aston Villa Football Club, where the former hotel is Lot 49 and is expected to be auctioned later.
Cottons describes the sale as "a unique opportunity to purchase a former freehold hotel premises set within extensive grounds and extending to an area of approximately 7.9 acres and offering scope for redevelopment".
The building dates back to the 16th Century and was once a working flour mill. It was restored and turned into a 41-bedroom hotel. The auctioneers suggest the building may be suitable for similar commercial uses as the hotel or alternative residential uses.
People interested in buying the property, near Bridgnorth, were unable to visit all of the site because the fire left parts of the building unsafe and these were due to be demolished.
A former Shropshire hotel set in eight acres, which was severely damaged in an arson attack, is to be auctioned with a guide price of £250,000.