The fire started at about 7am at the building, operated by the Sugar Marina Hotel group next to the Beyond Kata Hotel.
The ground floor housed KIRI Restaurant, which serves breakfast to guests staying at Sugar Marina Resort. The second floor also contained a restaurant, while the third floor was occupied by Pinewood Massage Onsen Spa.
Firefighters from the Disaster Prevention and Mitigation Unit at Karon Municipality responded with fire engines and water tankers to tackle the blaze.
The fire was brought under control by about 7:45am and did not spread to neighbouring buildings.
No injuries or fatalities were reported.
The cause of the fire and the extent of the damage remain under investigation.