Fire investigators in Watsonville now believe that a hotel- fire last month was a case of arson. The fire at the stag hotel on west beach street injured 17-people, and left 50-people displaced from their homes. The april 30th fire began at about 6 p.m. in a front office. The 85-year-old building did not reportedly sustain significant structural damage, but repairs will be needed, which could keep the hotel closed until the end of the year. The arson investigation is on-going.