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The Scottish Fire and Rescue Service have confirmed they are in attendance at the building.
Videos and pictures on social media show the hotel completely engulfed in flames.
Twitter user @edglasgow59 wrote: “The Lundin Links hotel in Lundin Links has burnt down.
“It shut years ago but nothing was done with it.
“Everyone in the area expected the Hotel to mysteriously catch fire as permission wasn’t available to pull it down.”
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