Fire crews are trying to establish what caused the Londesborough Hotel fire on West Street in Bridlington, after the pub was seriously damaged on Wedneday.
The roof of the pub has been completely destroyed after flames engulfed the building on Wednesday afternoon.
At its height some 55 firefighters were tackling the fire at the large pub on West Street in the seaside town.
Humberside Police have said the road will remain closed as investigations into the fire continue.
There have been no injuries reported, however neighbouring businesses were evacuated as the fire took hold.
Heroic neighbour, Steve Fox who works at N Charles Bookmakers on West Street told the Bridlington Free Press how he raised the alarm.
He said: "One of the customers went out for a cigarette and came back in and said The Londesborough was on fire.
"Smoke was coming out of the roof and we could see the flames.
"I ran into the pet shop next door to the Londesborough and there was nobody at the front because they were all doing grooming at the back, so we told them and brought them all into the bookies.
"We banged on the door of the Chinese takeaway and got the people out of there."
Gas and electricity supplies were turned off in the area and surrounding roads were closed until the fire service had put out the fire by about 8pm.
The building is now thought to be unstable and the road remains closed to traffic.
Other businesses on the street have said they hope to return to normal as soon as possible.
N Charles Bookmakers Tweeted: "The middle section of West Street is closed to traffic although you can drive as far as Thorpe Street and Neptune Street.
"The middle section is however open to pedestrians so we will open today and assess the situation. Any winnings may of course be collected from any of our other offices."
Paws N Claws, the pet shop and grooming studio next to the Londesborough, posted on Facebook: "After a very hard day. I would just like to let everybody know the staff and all the animals are safe, we hope to be back in business very soon."
The Kingfisher Cafe, which raises money for the homeless community in Bridlington, has confirmed it is open and serving meals today.