Hotel fire causes $2M in damage: Blaze at former Uncle Billy’s hotel being investigated as arson

  • DLNR photo Holes in the roof expose the interior of the former Uncle Billy's Hilo Bay Hotel after an early Friday morning fire.

  • DLNR photo An early Friday morning fire resulted in a charred interior of the former Uncle Billy's Hilo Bay Hotel.

  • Kelsey Walling/Tribune-Herald The Hawaii Fire Department investigates the aftermath of a fire at the former Uncle Billy's Hilo Bay Hotel on Friday.

  • Kelsey Walling/Tribune-Herald Rooms are charred from a fire at the former Uncle Billy's Hilo Bay Hotel Hotel on Friday.

  • Kelsey Walling/Tribune-Herald The Hawaii Fire Department investigates the aftermath of a fire at the former Uncle Billy's Hilo Bay Hotel on Friday.

  • DLNR photo Firefighters and a Department of Land and Natural Resources enforcement officer survey the charred remains after an early Friday morning fire at the former Uncle Billy's Hilo Bay Hotel.

The Hawaii Police Department has assumed the investigation of a Friday morning fire that caused an estimated $2 million damage to the shuttered Uncle Billy’s Hilo Bay Hotel on Banyan Drive.