The fire broke out overnight in the small east German city of Bautzen. Video showed the roof of the building, The Husarenhof, engulfed in flames, though firefighters on fully extended ladders appeared to have the blaze under control.
Authorities said that evidence of an accelerant had been found in the building, according to the Associated Press. No injuries were reported.
The fire comes amid a historic influx of refugees and migrants fleeing Syria and elsewhere, and a once open door policy championed by Chancellor Angela Merkel that has inflamed right-wing nationalists.
After a string of sexual assaults in the western city of Cologne on New Year’s Eve were committed by men that police described as “North African,” protests were held protests in the eastern city of Leipzig. Some held signs denouncing "rapefugees."