The historic building is a well-known, long-standing hotel which dates back to 1913.
It is known to have stunning views of Mt Ruapehu and also boasts a bar and restaurant.
Central Fire and Emergency shift manager Carlos Dempsey said the local fire brigade initially responded and found a fire in the Rimu St property’s boiler room.
”It’s got into the wall cavities and the ceiling so it’s pretty challenging to extinguish. It went to our third alarm level,” said Dempsey.
Dempsey said there have been no reports of any injuries.
He also said the fire is not spreading further than the boiler room.
A police spokesperson said police were advised of the fire on Rimu St but did not attend.
Kings posted that it would be closed tonight but hoped to be back open on Monday.