Specialist officers finally brought the violence at HMP Ashwell in Rutland under control at 2245 BST on Saturday.
The Prison Officers Association (POA) said three staff had barricaded themselves in an office for about 12 hours, waiting to be rescued.
The Ministry of Justice has denied overcrowding was a factor in the riot.
The POA added four accommodation wings, two workshops and a healthcare centre "had been wrecked".
Glyn Travis, POA spokesman said: "There's been a very, very serious riot resulting in serious damage to the prison and loss of cellular accommodation.
"On top of that, unfortunately, three members of staff were basically held hostage for the best part of 12 hours.
"The prisoners weren't holding them hostage as such but they had to secure themselves in an office until such time as staff came to their rescue and that must have been very, very traumatic for those people."
POA national executive member Peter Chapple said administration buildings and a reception area had also been damaged during the violence which began at 0100 BST on Saturday and had left only about 25% of the category C prison "habitable".
There is going to have to be a serious investigation into what is clearly a serious incident
Alan Duncan, MP for Rutland and Melton
The final repair and clean-up bill would run into "hundreds of thousands of pounds", he said.
POA national chairman Colin Moses added: "We have been warning of this type of disturbance for many months, but no one wants to listen."
He said a lack of investment had led to fewer specialist staff and a failure to address the issue could lead to HMP Ashwell becoming the "first of many disturbances of 2009".
Local MP for Rutland and Melton, Alan Duncan, voiced his concerns about investment in the jail.
However, a Prison Service (PS) spokeswoman insisted it was "simply untrue" Ashwell was either holding Category B prisoners or overcrowded.
"I don't want to jump to any conclusions and I've spoke to the minister David Hanson and assures me there is not overcrowding and assures me that there are not any Category B prisoners, they are all Category C," she said.
"But there is going to have to be a serious investigation into what is clearly a serious incident."
Justice Minister Lord Bach said he did not believe the incident was linked to staffing or budget issues.
He praised expert staff for "doing a great job under very difficult circumstances and with much courage".
The PS said about 420 inmates were moved to other prisons during the disturbance but around 180 remained at Ashwell in cells.
"No staff were injured and there were minor injuries to three prisoners," it said.
It is thought a decision to remove privileges from some prisoners led to a small group inciting others to riot.
The prison, built on a former Army camp, started as an open prison in 1955 and was converted to a Category C jail in 1987.
from BBC news
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