ONLOOKERS watched as Port Macquarie's old Coolibah Motel on Gordon Street went up in flames on December 3.
Flames from the derelict and vacant building soared beyond the roofline of the two storey building as it was engulfed by fire on Tuesday evening.
Four fire units from Port Macquarie and Wauchope attempted to contain the blaze and protect nearby properties while dozens of people watched on.
Gordon Street was closed to traffic at the intersection of Ocean Drive with NSW Police providing traffic management.
An ambulance crew was on standby while HAZMAT provided assistance to firefighters as acrid smoke billowed into the sky.
Residents in nearby properties including the residential retirement village were not evacuated.
The fire caused a power outage in the surrounding area.
One onlooker said the motel, which has been a vacant "eyesore" on Gordon Street for many years, should be demolished.
Fire crews worked on the blaze for several hours and an investigation will commence into the cause of the fire.
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