The emergency services have evacuated 35 hotel residents from the Saints Bay Hotel after a fire broke out in the kitchen.
Guernsey Fire & Rescue, the police and St John Ambulance were called out at 7:23 am, with two fire engines at the scene of the incident.
The crew tackled the blaze for around three hours until it was brought under control.
They are now working to dampen any remaining flames and to ventilate the building.
Islanders living near the hotel have been asked to keep their windows and doors closed due to the smoke coming from the hotel.
The police spoke to hotel management about next steps and helped residents collect their belongings.
The evacuated are now staying at the Styx Community Centre while alternative accommodation is found.
Nearby roads have been closed, and people are asked not to go near the area.

Guernsey gives £75k for Islands Unlimited inter-islands sailings
Guernsey tax package to raise more States income but protect low earners
Changes to make Guernsey's buses more reliable
Aurigny plane makes emergency landing after leaving Guernsey
New festival part of Guernsey's Seafront Sunday
Guernsey firefighters tackle round-island walk in full kit
No provider awarded subsidy for seasonal inter-island ferry service
Guernsey's key industry 'stable' in a turbulent world