'Rather precarious': Fears Federal Backpackers may collapse
Firefighters have brought the blaze under control but it is still too unsafe for emergency services to enter the Spotted Dog Tavern and Federal Backpackers hostel.
The fire, which broke out last night, has destroyed the two buildings in Bundaberg Central.
Queensland Fire and Emergency Services Wide Bay Burnett Superintendent Jeff Keating said the second and third floors were completely burnt out with debris from above falling through to the first floor.
"The facade on the front of the building is rather precarious at the moment, so police, the owners and insurance companies are looking at how they can solve the problem with the potential collapse of that wall," he said.
Mr Keating said the Federal was an old building with timber flooring and once the fire took hold it created a "volatile" environment.
He said at this stage there was no indication as to how the fire started.
"We've got fire investigation here, our problem at the moment is, it's too unsafe for fire investigators to make entry into the building," he said.
"We're waiting to get some equipment in so that we can make it safe for both police and fire services to go in and do the fire investigation."
Bundaberg Patrol Group Inspector Anne Vogler said they were in the process of assessing the structural concerns.
The exclusion zone which was declared last night will remain in place until the site is deemed safe.
Insp Vogler urged anyone with information to contact PoliceLink on 131 444.