Devon and Somerset Fire and Rescue service received a call at 2.40am with reports of fire which had trapped people on the fourth floor.
The fire, which is thought to be deliberate, damaged one room on the third floor and the third and fourth floor were both damaged by smoke.
A full evacuation of all of the hotel’s 184 occupants was carried out and there were eight casualties in total.
Four people were taken to hospital suffering from smoke inhalation and one was said to have chest pains.
The fire was said to be under control at 5.28am.
A statement from the fire services said: “All persons were accounted for and first aid was rendered by Fire Service personnel at the scene.
“At this time the cause of the fire is suspected to be deliberate a police investigation will be carried out.”