Firefighters are responding to reports of an electrical fire at the SeaVenture Beach Hotel in Pismo Beach.
CAL FIRE SLO says reports came in around 8 p.m of a possible fire on the second floor of the hotel.
The second floor is under construction and fire investigators believe a worker put a towel or rag into an electrical socket.
The cause is still under investigation.
Fire officials say Pismo Beach police officers were first to arrive on scene and were able to put out the fire.
According to CAL FIRE SLO, there was no external damage.
Hotel guests are temporarily evacuated as crews search additional rooms.