As the front-end loaders moved in, developer Grant Furstenburg celebrated, saying he had been waiting for "almost a year for this day".

"I'm very excited, there have been many obstacles and challenges, but to stand here today and see the start of the development coming together is exciting.

"There has been a bit of uncertainty about the development, but when the new structure goes up people will be wowed," Furstenburg promised.

He had initially planned to demolish the hotel by imploding the building at night in a spectacular event with a light show.

But Wednesday he said that after consulting with engineers, they decided it would not be safe for the surrounding buildings as they did not know how structurally sound they were.

"People in East London don?t seem to like change, but it has to happen.

"Structures go down and bigger ones come up," Furstenburg added.

Local resident Simon Kirk on Wednesday said he was upset to see the Dolphin go.

He first started going to the hotel 23 years ago.

"The demise of the hotel started when the dress code changed, the pool tables were removed and finally ended with the demolition of the hotel," said Kirk.

"It's an absolute disaster, it should never have been allowed.

"The hotel is part of Nahoon heritage," he said.

It will take about 21 days to complete the demolition process, after which construction of the Furstenburg Grand's 67 apartments will start.

Furstenburg said he did not expect there would be major dust concern issues for neighbours.

"We are trying to do everything we can to keep concerned neighbours happy."

He invited people who were curious to come and watch the hotel being demolished, but advised them to keep a safe distance.

Three-quarters of the luxury apartments in the proposed Furstenburg Grand building have been snapped up. It should take between 15 and 18 months to complete construction.

Furstenburg recognised that some people were disappointed to see the old building go.

"But I am sure their perceptions will change," he said.

Daily Dispatch