A fire in Dubuc has destroyed one of the village's last businesses.

Fire broke out at the Bernier Street Hotel just before noon Tuesday. Witnesses told CBC News the owner of the business was in the building at the time, but managed to escape unharmed.

Firefighters stopped the flames from spreading to nearby buildings but were unable to save the hotel.

One of the residents of Dubuc who watched the hotel burn was Susan Powell.

"The town is very small it's just a village of about 77 people and for us to lose that, it's not a good thing," Powell told CBC News Tuesday. "It's really sad to see that it's gone. That was the last business in Dubuc and a meeting place."

Losing a place like that makes it tough for a small community, but Powell said people there are resilient.

"We're a strong little community and I think we'll bounce back," she said.

The cause of the fire is under investigation.

Dubuc is about 155 kilometres east of Regina.

It was established in 1905 and the peak population was 250 people in 1931.