The incident was reported at 2.30am, and fire crews extinguished the blaze using two hose reel jets, a thermal imaging camera, and other small tools.
Heather Williams told the Leader that she saw the fire while on her way home from work in the early hours of this morning.
She said: “I just arrived back from work in Skegness around 3.30am and the fire engines were on the promenade putting out a big fire to a beach hut.
“My parents own a beach hut just along from there, and put their heart and soul into making it nice and comfortable.
“My mum has multiple sclerosis and it’s one place she enjoys going to.”
• More updates as we have them.