Man to admit arson at historic WA hotel

A third man intends to admit to setting a historic hotel in Western Australia's south ablaze, causing more than $2 million worth of damage.

Two people were staying upstairs at the 126-year-old Premier Hotel in Albany in May last year when it was set alight.

Karl Hutchinson initially pleaded not guilty to charges including criminal damage by fire but the Supreme Court of WA heard on Monday he would plead guilty at his next court appearance on May 22.

Christopher Lyndon Patterson and Aaron Mark Hasson pleaded guilty last month, and all three men will be sentenced on July 20.

The hotel's co-owner Graeme Cooper is fighting charges including attempting to gain a benefit by fraud, with prosecutors arguing he enlisted the help of Scott John Gay because his business was struggling.

Gay, who is yet to enter a plea, allegedly co-ordinated a staged robbery at the hotel, which was then set on fire.

Gay and Cooper are scheduled to appear in court again later this month.