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Emergency services were called to the property on the corner of Buller Rd and Shaw Rd about 5.41am.
Southern fire communications duty shift manager Brent Dunn said crews found the building - formerly the Inangahua Arms Hotel - "well ablaze" on arrival.
The first firefighters on the scene called for more resources. As a result, other fire crews from around the region responded to help.
"At this point, all persons are accounted for," Dunn said.