The Fire Service says a $3 million lodge near Arrrowtown could have been saved had sprinklers been installed.

The Speargrass Lodge was completely destroyed in yesterday's fire.

Southern Fire Region spokesman, Barry Gibson says given the value and relative isolation of the lodge, it would have made sense to have sprinklers installed.

The fire would have been under control long before it caused significant damage.

The blaze is the second to claim an expensive property this month. Smoldering ashes recently destroyed a million dollar home on Auckland's exclusive Paritai Drive.