A fire chief said that when firefighters arrived they encountered heavy smoke and flames shooting from the second floor of the home.
Fire just tore through the second floor, the fire chief said, causing the roof and window dormers to collapse into the second-floor area.
The fire was first reported around 1:30 p.m. and has yet to be contained. Fire crews remain on the scene battling hotspots.
The 3-alarm fire has caused severe losses destroying several houses and businesses in its path. Most of them are restaurants and hotels.
About 200 metres from the fire, a five-seat car has been gutted.
No injuries have been reported. The cause of the blaze remains under investigation.