The ACT Emergency Services Agency said the fire was reported in the Goyder Street Narrabundah hotel at 10:45pm.

"Firefighters arrived a short time later to discover a fire had occurred in the laundry of one of the accommodation wings of the hotel," the agency said.

The fire sent smoke through the hotel, and guests were relocated to rooms in other parts of the hotel while firefighters investigated.

"The laundry has sustained smoke damage and a dryer, where the fire is believed to have started, has been destroyed," the agency said.