UPDATE: 4:45pm: THE multi-million dollar Byron Bay Guesthouse on the corner of Massinger and Kingsley streets was totally destroyed by fire on Tuesday afternoon.

The renovated property was marketed as the Spirit of Bali in Byron Bay.

A neighbour said she heard a loud bang and glass breaking about 3pm.

"It happened so quickly … it was totally engulfed in flames within minutes," she said.

"I was worried about the fire spreading because the houses are so close."

UPDATE: 3:45pm: A multi-million dollar property believed to be a guest house has been totally destroyed by fire at Byron Bay.

Witnesses at the scene reported flames soaring above the height of the powerlines and the property burned.

One witness told the Northern Star fire fighters did well to save a neighbouring residence from going up in flames.

Fire fighters are still on the scene of the blaze at the corner of Massinger St and Kingsley St.

FIRST REPORT: A house in on fire in Massinger St at Byron Bay.

A Fire and Rescue NSW spokesman said a tanker from Byron Bay was called to reports of a house fire at Massinger St at 2.45pm.

The spokesman said the house was currently well alight.

Two additional Fire and Rescue NSW tankers are on their way to the scene.

Police and ambulance are also in attendance. More details to come.


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