Five fire engines and two aerial ladders were called to the hotel as firefighters took two hours to extinguish the fire, which started at around 3am.
In a statement released on its Facebook page, the hotel said: “We can confirm that there has been a small fire at 3.00am this morning at the Atlantic Hotel in Newquay, which was contained in a balcony room due to an incident concerning smoking – we have a strict non-smoking policy in place throughout the hotel.
“All guests and staff are safe, well and accounted for and guests were taken to The Headland Hotel via taxi, guests were welcomed with light beverages, and we would like to thank The Headland Hotel for looking after our guests.”
The hotel also confirmed that it has re-opened for breakfast from 7.30am this morning.
The hotel added: “We would like to give special thanks to our staff and Cornwall fire and Rescue Services. We would also like to confirm that we are open for business, with all facilities open.”