A two-storey building used as a 20-room guest house at Lorong Bagan Luar 1, Bagan Luar here was destroyed by fire today.

The 3.10pm fire also destroyed two bus ticket counters and a used shoe shop on the ground floor of the 50 year-old building.

Three occupants of the guest house and four traders managed to escape as soon as they came to know there was a fire.

Butterworth Fire and Rescue Department chief, Mohd Khalil Abd Rahim said they received a distress call at 3.14pm.

"When firefighters arrived, the fire was raging and had spread across the wooden building and strong winds made it difficult to extinguish the fire," he told reporters when met at the scene.

Mohd Khalil said the fire was brought under control and prevented from spreading to adjacent buildings at about 3.29pm and doused completely half an hour later with the aid of three fire engines and 20 officers and 50 Volunteer Fire Fighters.

The cause of the fire and losses incurred are still under investigation.