The Emergency Services Agency said the alarm went off about 8.55pm at the East Hotel on Giles Street and staff told firefighters they smelled smoke in a room of the hotel.

Guests were evacuated from the five-story building while firefighters searched rooms on the second floor for any sign of a fire.

"ACT Fire & Rescue has determined the cause of alarm to be from a simulated condition with no fire found," the agency said.

Guests were allowed back in their rooms about 9.48pm.