A 999 call was made at 09:39 from Sandown Hotel, Culver Parade after guests saw smoke escaping from the lift shaft.
The building was evacuated safely by members of staff.
Two pumping appliances from Ryde and Sandown, as well as the turntable ladder rushed to the scene, where it was discovered burnt toast was to blame for the call out.
Guests and staff were allowed to return to the building and fire crews left the scene shortly after 10:00.
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