Businesses in West Street in Bridlington have been evacuated following the major fire at the Londesborough Hotel this afternoon.
One of the first on the scene was Steve Fox who works at N Charles Bookmakers' office a few doors away from the burning building.
He said: "One of the customers went out for a cigarette and came back in and said The Londesborough was on fire.
See a video of the fire here
"Smoke was coming out of the roof and we could see the flames.
"I ran into the pet shop next door to the Londesborough and there was nobody at the front because they were all doing grooming at the back, so we told them and brought them all into the bookies.
"We banged on the door of the Chinese takeaway and got the people out of there."
More video from the scene here
Parts of the road are still cordoned off and all the businesses have been told to close by emergency services.
Steve added: "I am still in the shop now but police have told me to cash up, get my stuff and go, because we need to get behind the cordon. I had to get rid of all the customers
"As far as we know, nobody has been hurt, but we heard all the floors collapse and heard the roof come in."
Steve said he had spoken to a woman who works in an office above the Londesborough minutes before the fire broke out.
"It was scary because the fire was spreading this way," he said. "Right now it seems to be under control but it keeps flaring up and coming back."