The 100-year-old sailing boat-built out of teak and registered in Glasgow was gutted in the blaze at Alicante Royal Regatta Club, Spain, just after 4am on Hogmanay.
It is understood the boat's hull was valued for&nbsp;insurance purposes at more than &pound;2.5million.
Ukrainian Three merchant seamen were arrested on suspicion of criminal damage after the 65ft yacht, called Maori, was torched.
The vessel's owners including one person originally from Scotland found out about the fire while on holiday in Brittany. They then drove 15 hours to the Costa Blanca to inspect the damage.
At a Spanish court two of the men arrested, aged 20 and 35, admitted taking flares off a merchant ship they were on and setting them alight in the port.
A lawyer acting for the yacht's owners said: "They've owned the vessel for 20 years, use it regularly and are devastated.

£200k damage to Scot's yacht in Hogmanay blaze

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