Firefighters spent more than two hours putting out a blaze in Rotorua's CBD.
A Fire and Emergency NZ spokesman said emergency services were alerted by an alarm at 5.43pm yesterday.
Flames and smoke could be seen billowing as firefighters work to bring the blaze under control.
The fire was burning in a two-storey building on Pukuatua St, near the intersection with Tutanekai St. Four fire crews were at the scene. They put the fire out and left about 8pm, the spokesman said.
The building is believed to be used for accommodation.
Nobody was injured.
Witness Sarah Pearson was in her salon Honey Comb when she first smelled smoke.
When she looked outside "smoke was pouring out of a top window" of the accommodation next door and people were out on the street.
"We had just got all of our cars out of the laneway and a window exploded above."
She said it was "pretty horrendous" to see but it was a relief nobody was hurt.
"The building itself is not very good."
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