The demolition of the Royal Albion hotel is not expected to begin today.
Contractors are at the scene in King's Road, Brighton with demolition equipment.
The first skips and a forklift arrived at around 10am yesterday.
But The Argus understands demolition is unlikely to begin today.
A demolition worker said: "I'm pretty sure it won't start today.
"There's still a lot to do in terms of checking the site is safe."
Firefighters left the scene but have returned this morning as smoke was seen coming from a second floor window.
Crews are using an aerial ladder platform and a hose to dampen down what remains.
Last night, embers began to burn again after the fire was believed to be out.
Civil engineer contractors have brought a large forklift inside the cordon along with several huge skip.
A spokesman for Brighton and Hove City Council said: "Our building control team is on site and contractors will begin the demolition of the damaged section of the building as soon as possible.
"We’re anticipating the demolition will take two to three weeks.
"The demolition is to help the fire service’s access to the site, as parts of the building are no longer structurally safe.
"UK Power Networks and Southern Gas networks are on scene to ensure that that all electrical and gas are isolated and made safe prior to any work progressing.
"Asbestos is known to be in the textured ceiling coatings used in the building but there is unlikely to be any significant risk of exposure to asbestos following this fire.
"The area around the hotel has been cordoned off and our on-site contractor will continually assess the risk.
"Unfortunately, the properties directly behind the Albion Hotel will remain inaccessible due to the risk of falling debris during the demolition process.
"Anyone affected by this is able to contact our housing team for advice and support."
A digger is now at the scene and forklifts are being used to install a fence around the site.
There is also a large crane on the site which has been seen moving and extending its arm and grabber.
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