Bernhard Spa Hotel in Otepää, a popular skiing resort in southern Estonia, was destroyed in fire on Tuesday evening.
The fire was reported at 17:14 by which time the two-story wooden building was engulfed in flames.
The firefighters managed to stop the fire spreading to the nearby hotels and the fuel tanks stored in the hotel's boiler plant.
The hotel itself was empty at the time of the accident. However, a firefighter from the local fire department was injured as he inhaled smoke and was taken to the hospital for a check-up.
The fire was under control by 21:30 and put out by 02:30 on Wednesday morning.
Police and Border Guard Board's spokeswoman Kristina Kostina told ERR that Valga police department has opened an investigation into the fire on suspicion of arson. Kostina stressed that the information they have is preliminary and only expert assessment, once complete, can confirm or disprove this provisional theory of events.