Fire crews have been called to the Channel View Hotel in Sandown this afternoon (Wednesday).
Appliances from Shanklin, Newport, Ventnor and Ryde attended the scene on Royal Street, off Beachfield Road, shortly after 3pm.
There was a major response to the call due to the size of the hotel.
Hampshire and Isle of Wight Fire and Rescue Service said the fire started in the hotel's laundry room.
A spokesperson for the service said the fire is now believed to be out.
Royal Street is currently closed to traffic.
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