Emergency services were called to the New County Hotel in County Place, Perth, shortly before 5.10am on Monday. Police Scotland confirmed that guests had been evacuated from the city centre hotel.
The force appealed to members of the public to avoid the area, while Perth and Kinross Council said a number of roads in the area had been closed.
The local authority announced the road closures on Twitter, saying they were “due to an ongoing incident”. It added: “Be aware that traffic in the surrounding area is also likely to be impacted as well as public transport routes. Please avoid the area if you can.”