Rydges Port Macquarie blaze | Photos, video

Fire crews were alerted to the incident at about 1pm Sunday and on arrival could see a plume of smoke on the top floor of the waterside hotel.

Given the location of the fire and uncertainty of the cause, back-up crews from Port Macquarie, Wauchope and Laurieton were called to the scene. They were further bolstered by the Rural Fire Service, police and ambulance. The HAZMAT unit arrived on-site after crews conducted a floor by floor scan of the building.

Hay Street was closed to all traffic with Rydges management alerting several hundred occupants to evacuate the building via an internal intercom system.

Guests spilled out on to the street with their belongings, some unaware of the commotion until they exited the building.

Gabby and Jason McDonald of Laurieton had stayed overnight after birthday celebrations and were stunned by a foyer filled with fire crews as they exited the elevator.

"We were coming down the elevator to check out and go get our car and the fire brigade was everywhere," Gabby said.

Norma Stephen of Sydney grabbed what she could after the evacuation order was received.

"I just grabbed the important things," Norma said.

Rydges staff joined guests and bystanders as the drama unfolded and confirmed that the sprinkler system had activated causing some water damage. 

Rural Fire Service's Bruce Blackburn said there was a significant amount of smoke lingering in the building and crews were required to utilise breathing apparatus upon entering.

Inspector Mark McGuire of Fire and Rescue NSW (Mid North Coast) said every floor had been assessed by the fire contingent.

"On arrival we could ascertain that a small amount of smoke was coming from one of the higer levels," Inspector McGuire said. The southern rooftop facade of the building is blackened.

"It appears as though the fire has started on the roof in the air-conditioning vent. We have looked to ensure there's no more fire activity there.

"It appears there's been damage to the ducting however the sprinkler has activated and there is a fair bit of flooding on ground floors."

Crews were busy cleaning the lower floors throughout the afternoon.

All occupants were evacuated and there were no reports of injury or smoke inhalation.

Inspector McGuire praised Rydges' evacuation procedure and said management would be allowed back into the building on Sunday afternoon to assess damage.

Rydges general manager David Capper thanked emergency services crews and praised staff and guests for their handling of the incident.

"Crews were diligent in ensuring the building was safe," Mr Capper said.

"And our staff handled it magnificently."

He confirmed the accommodation sector of the building was not impacted however there was some damage to the kitchen.

Mr Capper expected Rydges to be operational by Sunday evening.