Fire broke out at the Town Suites hotel on Mercury Blvd. in Hampton early Friday morning.
The blaze was called in at 3:32am and crews put it out within 20 minutes. Most of the damage is from water from the sprinkler system.
Guests say the fire was from someone cooking in a kitchen.
Two people were treated for smoke inhalation. The fire marshal says they are now trying to figure out what management is going to do with all the guests.
