Police will investigate PO Hotel fire
3.30pm: The fire at the Post Office Hotel has been extinguished and the scene has been handed over to police, who will investigate the cause.
Fire and Rescue crews from Grafton, South Grafton and Woolgoolga worked for more than four hours to quell the blaze, and eventually put it out by flooding the basement level with firefighting foam and water.
Grafton Fire and Rescue captain Garry Reardon said the crews had worked well in what were dangerous and difficult conditions.
More in tomorrow's edition of The Daily Examiner.
12:45pm: FIRE crews are waiting for a specialist vehicle equipped with firefighting foam to arrive from Kempsey in an attempt to extinguish the Post Office Hotel blaze.
The fire has now been isolated to the basement cellar where it started.
Grafton Fire and Rescue captain Garry Reardon said crews were initially able to reach the space but had to wait for Essential Energy to turn off power to the site before they could go in.
By that time the fire had become too involved for crews to gain access, so fire fighters have had to concentrate their efforts on containment through the first floor.
A road block remains in place on Victoria St between Prince and Duke St.
11.30am: Fire crews are still working to contain a fire at the Post Office Hotel, which has smoke billowing from doors, windows and cracks in the walls.
Emergency services were called to the building just before 10.30am.
It is believed a person has been living on the second floor of the building but was not inside when the fire started.
10.45am: EMERGENCY crews are working to extinguish a fire at the Post Office Hotel in Grafton.
We have a reporter on scene.
More to come.