A burst water main has flooded several Queenstown streets, sweeping cars away in the chaos.
Two fire crews were called to Hotel Moritz at about 10:40am on Friday, Fire and Emergency spokeswoman Lyn Crossman said.
She said the fire crews were working at the Brunswick Street hotel until the local council turned off the water main.
The crews have now left the hotel.
Southern District Police shared photos of the damage on Facebook.
Police said a water main on Thompson Street burst and is causing flooding on Brunswick Street, Lake Esplanade and Thompson Street.
Motorists are being advised to avoid the area.
Newshub.