User blog comment:Omega natsu2/Chapter 370: Demons Reincarnated, Predictions./@comment-5593752-20140131103548/@comment-7418318-20140131104505

Destroyed by Phantom Lord, ruined from several years of neglect during the timeskip (it was mentioned that the townspeople "restored" the building before giving it back to Fairy Tail) and the movie also had the main hall wreaked.

So I agree with you.