Ah so that's what happened to the cheap St Georges Bay Rd hostels (City Garden and Lantana Lodge) ! They must have all been converted into de facto SRO housing by MSD and that's why they no longer operate as travel accommodation.
Some of those rooms were tiny and the place was a labyrinth, and it was dodgy before it had a captive population - must have been a complete hellhole as an always-at-capacity social housing facility.
And yes does sound like another arson. Really lucky nobody lost their lives in this one.