A FIRE at a luxury hotel on Phillip Island has caused more than $1 million worth of damage.
The second floor of Castle Villa by the Sea on Steele St in Cowes was destroyed after a fire broke out around 7pm last night.
Firefighters battled the blaze for six hours with 13 trucks on scene.
No-one was hurt in the fire and arson investigators will return to the scene this morning.
The hotel commands up to $675 per room a night.
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