A man will appear in court today charged with arson after an old hotel was extensively damaged during a fire at Yass yesterday.

Around 2am Monday 22 May, emergency services were called to Comur Street, Yass, following reports of a fire.

Fire and Rescue NSW attended and extinguished the blaze; however, the building was extensively damaged, while one neighbouring property received water damage.

The property was vacant at the time and there were no reports of injuries.

Officers from The Hume Police District established a crime scene and commenced an investigation into the cause of the fire.

Following inquiries and a public appeal for information, police arrested a 20-year-old man at a nearby address on Comur Street, around 2pm that day, 22 May.

The man was taken to Yass Police Station and charged with damage property by fire or explosion greater than $15,000.

He was refused bail to appear at Goulburn Local Court today, 23 May.