Nelson Fire and Rescue Services received an emergency call from the Mountain Hound Inn on Monday evening.
Fire crews responded just before 7:00pm to find the hotel evacuated.
Chief Len McCharles says some guests had decided to cook food in their hotel room using a camp stove.
Chief McCharles says the occupants were able to put the fire out with an extinguisher.
Chief McCharles says its a good reminder to never use cooking appliances or BBQ’s designed for outdoor use inside any buildings as there is a high risk of fire and/or CO2 poisoning.