The fire was treated as a major incident, and a crew of retained firefighters was initially sent to tackle the blaze because regular officers were attending a fatal car crash in St Mary.
An investigation into the cause of the fire was under way this morning and the hotel was declared safe to reopen for business.
Forty-seven guests had to be moved from their rooms.
No one was hurt but some guests said they did not hear an alarm and also found it difficult to walk to safety as a result of the air being heavily smoke-filled.