The fire broke out just before 2:30 a.m. PT. There were no reported injuries but the building was so badly damaged, the remaining walls were knocked down later that day.
Some surrounding businesses have also been forced out of their buildings.
Fred Kirke, spokesman for the Esquimalt Chief and Petty Officers Association, said there is extensive smoke and water damage.
Fire investigator Troy Saladana says crews are still combing through the scene, trying to find the source of the fire.
"We've got some identified areas where we think most of the heat involvement was," he said.
"We'll be eventually getting into that area, but at the time, we've got some challenges. We're running into ATMs, five or seven safes so far."
A benefit concert is being organized to help staff of the Tudor House Pub.