Man to stand trial over WA hotel fire

A man accused of arranging a fire at a historic hotel in WA's south so he could claim the insurance will argue investments he had made and planned to make showed he was committed to the business.

The former licensee of Albany's 126-year-old Premier Hotel, Graeme Cooper, reaffirmed his not guilty plea to arson and fraud in the WA Supreme Court on Monday.

A third charge, doing an act that resulted in life, safety or health being endangered, was dropped.

Two people were staying upstairs at the hotel when it was set alight, causing about $2 million worth of damage.

Cooper's lawyer Max Saupin says he intends to show at trial how his client had already spent money on the business and planned future investment.

Cooper is expected to face trial in Albany.