Fire has destroyed the function room at Squids Ink hotel at Belmont, forcing 20 people to evacuate.
The blaze broke out just after 1am Monday morning and took two hours to fully extinguish.
40 firefighters were needed to tackle the flames.
They managed to contain the blaze to the upstairs function room, while the reception area below suffered water damage.
20 people who were staying at the hotel were relocated to a different hotel nearby.
Police and fire investigators will spend the day trying to determine the cause of the fire.