The process of demolishing two "unsafe" hotels in subsidence-hit Joshimath began on Thursday evening with an agreement between the administration and the property owners who had stalled the exercise for the last two days demanding compensation.

Hotels Malari Inn and Mount View had developed cracks and were precariously leaning towards each other posing a threat to the settlements around them, officials said.

The exercise has begun under the technical supervision of Roorkee-based Central Building Research Institute with Hotel Malari Inn, Disaster Secretary Ranjit Sinha told reporters here.

The demolition of the hotels was scheduled to be undertaken on Tuesday and all preparations had been done.

However, the process could not start as their owners staged a dharna demanding compensation along the lines of what was offered to those displaced by the Badrinath renovation masterplan.

"First, the iron sheets shading the hotel's roof will be removed. JCBs will also be used wherever needed. But everything will be done under the technical supervision of CBRI," an official engaged in the operation said.

"It will be dismantled in such a manner that no harm is caused to the structures nearby," he said, adding that the process will take time.