VIDEO: Chesterfield homeless hostel engulfed by flames
Two fire crews from Chesterfield and Clay Cross battled the blaze at Hope House on Derby Road - formerly the Ponderosa Guest House.
The fire began at around 12 noon and is believed to have been caused by an electrical fault in a fuse box.
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Hide AdAll residents got out of the hostel unharmed and the fire service are now working to clear smoke from the building.
One resident told the Derbyshire Times that at one stage large flames were seen shooting from the property.
Smoke could still be seen billowing from an upstairs room at around 1pm.
The building has recently been bought by Chesterfield's St Thomas' Church and is currently used by them to help vulnerable people adjust to life off the streets.
More on this story will follow as and when we get it.