No contractors were on site early on Wednesday morning after the Easter long weekend.
Work at the demolition site needs to be completed before the 2024 Bluff Oyster Festival can be held on May 25.
The building, constructed in 1914, has been vacant for more than 20 years.
It has a significantly cracked front facade and its overhanging parapet and cornice are visibly leaning out 75mm on to the street.
It is one of multiple hotels to be built on the site, including the Railway Hotel, Terminus Hotel and two Club Hotels, which all burnt down.
It has a Historic Places Category 2 listing but its poor condition was deemed a safety risk.