A police investigation has begun into the cause of a fire which destroyed a derelict historic hotel on the main street of Yass.
NSW police say the Commercial Hotel was extensively damaged and investigators are now appealing for information.
"Officers from the Hume Police District established a crime scene and commenced an investigation into the cause of the fire, which is being treated as suspicious," police said.
"As inquiries continue, anyone with information is urged to contact Yass Police or Crime Stoppers on 1800 333 000."
The fire raged in the early hours of the morning at approximately 2am and subsided once local businesses on Cormur Street began to open their doors to customers.
Local cafe owner Matt Leahy said business owners on Cormur Street did not witness the blaze, but when he arrived at work a section of the street had been closed off.
"We opened at 7am and at that stage most of the fire was out, I think it had been going on for about five hours," Mr Leahy said.
Other business owners said the old brick hotel was badly damaged by the fire, with the roof collapsed and the internal structures destroyed.
"It's pretty much just the shell right now," Mr Leahy said.
A spokesman for Fire and Rescue NSW said firefighters struggled successfully to prevent the blaze spreading to neighbouring shops, including a carpet shop, but the empty hotel itself was destroyed.
"Now they'll look at how the fire started," the spokesman said.
More than 40 firefighters from NSW and the ACT brought the blaze under control just before dawn, though two fire engines, including an overhead pump remained on the scene as the morning unfolded.
"The fire was so severe that a specialist Fire and Rescue NSW aerial pumping truck was called in so that the fire could be attacked from below and above," the fire service said.
"With the fire eventually extinguished after a six-hour battle, an exclusion zone was then established because of concern that there could be further structural collapse of the outer walls."
The historic hotel was derelict after it closed to customers 18 years ago but recently there were plans to redevelop it as a "family-friendly pub". It had been a central venue in Yass for 190 years.
Some demolition work had taken place but refurbishment was yet to be complete.
"As part of the redevelopment of the site, the developers will remove the existing verandah to allow them to begin work on a new verandah that meets current safety standards at a later date."
The developers said it was their top priority to retain the hotel's heritage character, with the aim of the reopening the venue which has a 190 year history as a "family-friendly pub".
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