The demolition of Hastings' oldest building is now visible to passers-by, as work begins on the Albert Hotel's exterior.
The hotel's owner, Michael Whittaker, said a team from Hastings Demolition was now working on the exterior of the top level.
It had previously moved methodically through the interior, salvaging whatever materials possible.
A considerable amount of material had been recovered from the building so far.
"The plan is to recycle as much as they can, they've started at the top level and they're working their way down. They made good progress on the inside," Mr Whittaker said.
There was still no indication of when the hotel's facade would come down, nor any details of a possible ceremony for the final stages of the demolition of the wooden building, which withstood the 1931 Hawke's Bay earthquake and was given category two protection by Heritage New Zealand because of its cultural and aesthetic value.
It was hoped most the demolition work would be completed by Christmas.
Following the demolition, a two-level container development will spring up on the site with up to 16 spaces for lease, modelled on Christchurch's successful Re:START container mall.
The Albert Hotel is Hastings' oldest inner-city building and was built in 1882 by William Dennett, an Australian immigrant who became mayor of Hastings.