THE Lough Swilly Hotel in Buncrana lies in ruins this morning after being burnt down overnight.
It took fire crews an hour to bring the fire at the derelict hotel under control and through until this morning to dowse down the embers.
An order allowing for the building to be knocked down was granted two years ago.
No-one was hurt overnight.
The Swilly Hotel was was built in 1865 but has been derelict for a number of years.
In 2010 An Bord Pleanla granted planning permission to Brian Flanagan to knock down the building and build a upmarket residential development, consisting of 74 residential units, three houses, a creche and 97 car parking spaces, some underground.
Buncrana Town Council initially granted conditional planning permission on the site but this was appealed to An Bord Pleanla by some residents.
The hotel stopped operating in the 1980s and was used recently as a furniture warehouse.
The road around the hotel is still sealed off; with access to the Swilly Ferry will be stopped for a time while a clear-up operation gets underway.