A BLAZE which caused thousands of pounds of damage to a hotel complex in mid-construction is believed to have been the result of an arson attack.

The fire was reported in the early hours of yesterday, on the site of a Travelodge development, in Gilesgate, Durham.

Three fire crews fought the blaze, on the site of the former Archibald's DIY store, in Station Lane.

It was brought under control shortly after 2.15am.

Fire experts and police forensic officers began examining the scene yesterday for clues as to the cause.

A Durham Police spokesman said last night that the blaze was being treated as suspicious.

"At this stage, there is no obvious motive, but we are continuing our investigations. It couldn't have been an accident as there are five separate seats of fire, which are all coverings on pre-fabricated bathrooms.

"Each costs about £3,500 and were only installed last week. The bathroom furniture is covered with a thick plastic, and that appears to have been set on fire deliberately."

He added that, in turn, the superstructure of the building had suffered damage.

A Travelodge spokesman said last night it is still hoped to have the construction complete in time for the scheduled December opening.

"We can't assess just how badly it is damaged, as it has been sealed off most of the day to allow the police and fire brigade to carry out their investigations. We will go in tomorrow to begin a full survey of the damage," he said

Travelodge, run by French company Compass Hospitality, won planning permission from Durham City Council in February for the £2.5m two-storey development, which will have 58 bedrooms, plus a kitchen, reception and serving area.