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Fire destroys hotel

Fire has gutted an historic hotel in Heathcote over the weekend.

The blaze broke out on Saturday with NBN contractors noticing flames on one side of the Lake Hotel which is now a private residence alerting two women inside who escaped uninjured.

Firefighters were hampered by wind gusts of up to 40km/h with Heathcote-Nagambie Road closed in both directions for five hours as the fire was brought under control.

The CFA says the fire may have been started where power cables were connected to the side of the weatherboard house and is not being treated as suspicious.