In what was termed a minor miracle by those on the site of the 3 a.m. blaze, 250 guests, most of them elderly and some partly disabled, were roused from their rooms and evacuated by bus from the mountainside resort, all without injury.

The hotel's core buildings, including a two-story office and lobby, plus the kitchen, dining rooms and meeting rooms, were wiped out. The fire is said to have started in the kitchen and destroyed more than two-thirds of the place.

Hundreds of firefighters from 16 fire companies worked the blaze for more than 12 hours, staying on into the afternoon while excavators removed collapsed wreckage to prevent a rekindle.

Many of the 186 rooms that branched out from the main building were saved, but smoke and water damaged those, too."  (Times Herald Recordonline, 2000)

The owners tried to rebuild it , with great hopes, but:

"In an effort to rebuild, Gasthalter sought a number of tax breaks, but filed for bankruptcy before the project was completed."  (Times Herald Recordonline, 2004)

It was purchased with the plans to build a 70,000 square foot hotel with 215 guest rooms, and employ up to 100 people:

"A corporation dubbed S.A.T. Catskill has agreed to buy the hotel, which was destroyed by a fire in October 2000, for $4.25 million, according to records filed with the U.S. Bankruptcy Court in White Plains. The property has been tied up in Chapter 11 bankruptcy proceedings since May 2003."  (Times Herald Recordonline, 2004)

And most recently:

"The county Industrial Development Agency (IDA) board unanimously chose Tuesday to terminate its agreement with the owner of the former Paramount Hotel in Parksville.
'Originally they proposed to improve the Paramount and employ a lot of people, and none of that happened,' related IDA Executive Director Jennifer Brylinski. '... Nobody could really justify [keeping the agreement] anymore.'

"In 2004, Paramount Realty Associates purchased the hotel and more than 220 surrounding acres at auction for $4.25 million.
Since then, little visible work on the property has been done, and several for-sale signs dot the area."  (Sullivan County Democrat, April, 2012)

And from the Town of Liberty Department Head Meeting Minutes:

"Paramount Hotel may be doing demolition.  Will let Board know more next month."  (Town Board of the Town of Liberty, Department Head Meeting, August, 2012)