It started at the back of the hotel, which dates from 1793, with the flames quickly spreading to the roof.

Villagers woke this morning to see the hotel destroyed, and firefighters dampening down the ruin.

Kenny Regan, watch manager in Perth, told the Tele the building had been “gutted”.

“The fire began at the rear of the hotel, outside the building, underneath the mezzanine level,” he said. “Then the flames spread to the roof.

“It was well alight when our firefighters arrived. But it is 100% gutted.

“We are basically just making it safe now.”

Staff from Hydro-Electric were also there to shut off the electricity, and it’s thought Perth and Kinross Council will be looking into the safety of the hotel’s gable end.

A neighbour described the dramatic event, saying, “I was sleeping when I heard something popping.

“I looked out my blinds and saw light flickering.

“Then the flames shot up, and that was when I phoned the fire brigade.

“We had been renovating a room that adjoins the hotel and that suffered some heat damage, as did one of our cars.

“It was very alarming seeing the hotel up in flames, and I wouldn’t want to go through that again.”

A police spokeswoman said an investigation would now take place.

“It is too early to establish the cause of the fire, but we will be setting up a fire investigation team, which is a joint operation between the police and the fire brigade,” she said.

Traffic diversions were in place to allow the firefighters to carry out their work.