The blaze was the latest in a series of such incidents at the property on Queens Promenade since it closed in 2018.
This time, the fire spelt the end for the building after emergency services spent up to 18 hours dealing it as it created smoke gusts across the promenade.
Two people were arrested following the incident.
The derelict hotel has long suffered break-ins and attracted fly-tippers since its closure and in the summer of 2020, its ground floor was boarded up by Blackpool Council following complaints from residents and hoteliers.
Earlier that year, it was the scene of a major blaze which spread across four floors and in December 2020, fire ripped through the upper part of the building,
1. Demoliton of the New Hacketts Hotel
Demoliton of the derelict New Hacketts Hotel on Queens Promenade, Blackpool has got under way following the latest devastating fire. Photo: Daniel Martino
2. Demoliton of the New Hacketts Hotel
The demolition work attracted plenty of spectators. Photo: Daniel Martino
3. Demoliton of the New Hacketts Hotel
The New Hacketts closed as a hotel in 2018. Photo: Daniel Martino
4. Demoliton of the New Hacketts Hotel
Demoiliton teams moved in juts days after the latest and most devastating blaze to hit the former hotel. Photo: Daniel Martino
5. Demoliton of the New Hacketts Hotel
Demoliton work at the former New Hacketts Hotel. Photo: Daniel Martino
6. Demoliton of the New Hacketts Hotel
The latest fire left the former hotel building a shell of what it once was. Photo: Daniel Martino