The abandoned Naval Base Hotel has been partially destroyed after a deliberately lit fire last night.
The hotel, on the corner of Rockingham Road and Burlington Street, has been abandoned since May this year and local worker Zak Visic said it has been home to squatters since its closure.
“There’s been squatters there since a few days after it closed. It gets broken into a bit,” he said.
“The area is bad, there have been a couple of break-ins.”
The Department of Fire and Emergency Services said the blaze was reported at 8.47pm and firefighters had extinguished the flames by 9.20pm.
They believe the original ignition point was a vehicle that had been intentionally set on fire at the abandoned site. The hotel then caught fire, destroying the back half of the building.
Mr Visic said it was not surprising the fire was intentionally lit and not an accident.
“It attracted a bit of a rough crowd while it was open, and people are in and out of there now,” he said.
A police spokesman said officers did not attend the scene and said it did not appear that anyone had been injured.
Police investigations are continuing.