Locals left devastated as heritage-listed pub ravaged by suspicious blaze

A heritage-listed pub south-east of Melbourne has been destroyed by a fierce blaze this morning.

The Ranges Hotel in Gembrook went up in flames just after 6am.

Fire crews arrived on the scene afterwards to find the iconic hotel engulfed.

More than 50 firefighters worked to control the fire, with concerns the property could contain asbestos.

"We've lost about 80 percent of the building," Don Wilkie from the CFA said.

No one was injured.

The property was built in the 19th century, and underwent renovations in recent years.

Locals told 9NEWS the pub has become the heart of the town, and are devastated at the loss.

"When you're part of such a small community, it's where you go for all your events," resident Paul Fry told 9NEWS.

Fellow local Anne Scandizzo said the town was "already talking about it being rebuilt."

The 124-year-old pub sits across the road from the final stop on the Puffing Billy Railway track. The tourist attraction was forced to cancel all services to Gembrook for the day as a result of the fire.

Investigations into the cause of the blaze are ongoing.