People dining in the restaurant at the front of the hotel had already been safely evacuated from the building.
No injuries reported as a result from the fire.
Patong Police were alerted to the blaze at the Beyond Patong hotel on the corner of Thaweewong Rd and Sawatdirak Rd at about 7:30pm.
More than 10 fire trucks and rescue teams arrived at the four-storey hotel site to find plumes of black smoke billowing from the lower level, where construction equipment was being stored.
Workers staying on site were evacuated from the building and police closed the beach road to traffic while firefighters battled the blaze.
By 11pm, much of the smoke had dissipated and authorities entered the building. However, firefighters could not access the restaurant area, which was still choked with thick smoke.
Firefighters brought the fire under control by 1am, though patches throughout the building were still smouldering.
The cost of damage from the fire has yet to be determined.