Two years ago it was nothing but a burnt-out shell.

The Royal Albion Hotel on Brighton seafront was destroyed by fire after a chef dropped a tray of cooking sausages and eggs.

Flames spread through the ventilation shafts and within hours the elegance of the 172-year-old building was gone as its entire central section collapsed.

Now, after a painstaking £7 million restoration, it has opened for business in time for the lucrative Labour Party conference.

General manager Peter Milne is delighted the Grade II-listed building he refers to affectionately as the "Grand Old Lady" is again welcoming guests.

He said: "It's wonderful to have the place back in working order again. People have been coming in and saying how nice it is.

"The day the fire happened was absolutely terrible. The reopening was one of the proudest moments of my life."

After the fire, which started on November 24, 1998, chef Nigel Halkyard, 20, from Lancing, was aghast, asking: "What have I done?"

Sitting outside the building he said: "I feel really guilty. It's really weird."

He was offered his job back for the reopening but declined, instead taking a post at another hotel in the Britannia chain.

The rebuilding, which started in May last year and ended this summer, was unexpectedly successful.

Mr Milne said: "It was a very intricate job, but it all went better than could have been hoped. It didn't take long considering how complicated it was."

New chandeliers now hang in the lounge and the restaurant is stocked with exotic fruits, meats, cheeses and vegetables.

Prime Minister Tony Blair was one of the first to feel the benefits of the new air conditioning system last night when he addressed a fringe conference meeting of the Unison trade union.

After his sweaty speech to the party faithful under the glare of the Brighton Centre lights this week, it must have come as a welcome relief.

Mr Milne said: "It's certainly a lot cooler now than during the fire, that's for sure.

"The building work has allowed us to improve the hotel as well as renovate it. The restaurant, the bedrooms, bar and lounges are all better than before the fire."

The Royal Albion underwent a £5 million refit only five years before the blaze.

The unfortunate Britannia group bought it for £4 million in 1997. But the company has taken things philosophically.

Mr Milne said: "The place has a far lighter feel since the building work took place.

"We have replaced a lot of the dark older panelling with new material, so it looks really good."