The landmark Mill Street Tavern on Campbell St Toowoomba has burned down overnight and Police have established a crime scene at the site.
The suspicious fire has caused major damage to the hotel which is owned by former NRL, player Jason Smith.
Police say two officers driving past the hotel late last night first noticed smoke and flames.
The blaze took Fire Officers more than an hour to bring under control and Police say everyone inside the hotel at the time have been accounted for.
Forensic examiners will spend today investigating at the scene.