"It looks like everybody is out of the hotel," he said, saying the hotel is sometimes used to house families in need.
Flynn, a co-founder of the Inner City Helping Homeless organisation, said pieces of debris could be seen flying from the blazing building in scenes similar to the Grenfell Tower tragedy in London.
He said he understood no homeless families were currently housed in the building.
"We are looking at the top seven floors that appear to be alight. It seems to be spreading like mad. It's exactly what it looked like at Grenfell. It appears to have started on the top two floors but has spread downwards and upwards."
Erica Fleming, whose apartment overlooks the hotel, said she could see and hear windows exploding from the heat.
"One of the apartments is completely engulfed," she said.
"I can see the fire crews dragging the hoses through the building. They are still two floors below but they are making their way up slowly."
- PA, AAP