A luxury houseboat has been totally destroyed by fire in Pittwater.

Known as ‘Lilypad Palm Beach’ the ‘Private Floating Villa’ which accommodates two guests per night is rented out on AirBNB for almost $1,700 per night.

At 2.20pm today (Sunday, 20 September) emergency services were called to reports of a fire on the vessel.

Moored approximately 200m offshore, there were two people occupying the vessel at the time the fire began. Fire & Rescue NSW reported that both people managed to self evacuate and there were no injuries.

The vessel, that is rumoured to have cost around $300k to build, has been subject to some controversy in the area. It is understood that RMS have investigated the use of the vessel as accommodation.

Multiple emergency services responded to the incident, including Fire and Rescue NSW, Rural Fire Service, Broken Bay Water Police and Marine Rescue NSW.

The fire was fully extinguished by 3.20pm. Firefighters carried pumps and hose lines to the scene using private commandeered vessels.

Police have confirmed an investigation is underway, but Fire & Rescue NSW say at this stage they do not believe the fire is suspicious. Booms have been put in place around the vessel to prevent any fuel contamination of Pittwater.

Images: Marine Rescue NSW Cottage Point, AirBNB, Palm Beach & Whale Beach Assoc

Video: Marine Rescue NSW Cottage Point