Popular gastropub the George and Dragon at Clifton will be shut for months following a fire.
Firefighters from Penrith, Shap and Lazonby tackled the blaze, which took hold in the early hours of Sunday.
There were no injuries and the cause is currently to be confirmed. Police are investigating.
Cumbria Fire and Rescue Service said the blaze happened in the beer cellar.
Owner of the Askham Collection, Charles Lowther, said: “We’re obviously devastated about the situation but so relieved that everyone is OK. We’re currently contacting any guests who have bookings with us but unfortunately, it will be months before we’re able to reopen.
“I’d like to thank our staff involved for their brave efforts overnight to ensure everyone’s safety and the fire brigade for saving the building.”
Residents in the village were advised that they may have experienced low water pressure or discoloured water on Sunday morning as fire crews had to use fire hydrants.
They were advised to avoid using washing machines and dishwashers to avoid grit in the water causing damage to appliances.
United Utilities said the water was safe to use and the discoloured water was caused by normal sediment in the pipes been stored up due to the pressure changes and water volumes drawn via the fire hydrants.