Around 60 fire-fighters have been tackling a large fire at the Phoenix Hotel in Wisbech overnight.
The call came in just after 1am and 10 fire engines and three turntable ladders (including one from Norfolk) were required.
26 people were evacuated from the surrounding area and one man from a neighbouring building was treated for smoke inhalation and taken to hospital.
At 8am, around five crews and two turntable ladders remain at the scene dampening down. North Brink, Chapel Road and the road over the Freedom Bridge remain closed.
Area Manager Maurice Moore said: "This was a really difficult job for us due to the age and height of the building and the fact it was a terrace building. There was a real threat the fire could have spread to adjoining buildings, which would have caused a significant amount of damage to this historic area.
"However, thanks to the hard work of the crews, the fire was contained and prevented from spreading."
The cause of the fire is unknown at this stage. A fire investigation will be carried out once it is safe to do so.