A popular Lake Macquarie motel and function centre lies in ruins this morning after fire ripped through the premises early today.

Fire crews were called to Squids Ink on the Pacific Highway just before 1.30am on Monday to find the upper level restaurant and function centre well alight.

20 people had to be evacuated but no-one was injured.

Around 60 firefighters and 16 Fire Trucks were deployed to fight the blaze which guttered the upper level and left the bottom level damaged by smoke and water.

It took crews around 2 hours to extinguish the blaze.

The cause of fire is not known at this stage.

It’s estimate the repair bill will top $2million.

You can see Steve Meston’s Facebook Video Here:_

Squids Ink At  Belmont Destroyed By Fire picture: Steve Meston