The blaze, which gutted the Castle Court Hotel on Church Street also led to a number of local houses being evacuated for a time.
Local Cahir resident Eileen Grace was one of a number of people who had leave their homes in a rush late last night due to the fire.
The blaze, which broke out in the Ballroom to the rear of the Castle Court Hotel on Church Street, has caused considerable damage to the building.
The hotel has been unused for several years and is understood to have fallen into disrepair of late.
There was a smaller fire at the premises last year.
Last night, the alarm was raised at around 11.30pm – residents as far away as Market Street and Pearse Street say they heard the loud bang when the roof collapsed.
Eileen says it was a frightening experience.
Niall Morrison, who has a pharmacy on Church Street, says the blaze seemed to take hold quite quickly.
He called to a number of neighbours to warn them of the danger.
Four units of the fire brigade from Cahir and Cashel spent over 8 hours tackling the blaze…it's understood that the building has been gutted with a large portion of the roof collapsing.
Gardaí in Cahir are currently conducting a forensic examination at the scene which remains sealed off this afternoon.
The cause of the blaze has not yet been established…but Sgt Brendan Franklin has appealed to anyone who may have noticed any suspicious activity in Cahir town centre last evening to contact them.
Gardaí in Cahir can be contacted on 052-7445630 or the Garda Confidential Line 1800 666 111
