The call was received at 10.15am and emergency services were quick to evacuate the hotel and surrounding buildings including the Palm Court Hotel, Bike and Boot, Travelodge and Premier Inn.
A 100-metre cordon was put in place making St Nicholas Cliff, Spa Bridge and much of South Bay off-limits to the general public who were asked to avoid the area.
Steve Pratt, General Manager of the nearby Palm Court Hotel, said: “ We had to empty the hotel. We had minimal guests in because a lot had checked out.
“There were a dozen or so in the lounge having coffee and light bites.
“Police came in and said for safety reasons they should let us all know that we needed to evacuate down as far as our car park and we just had to let them all go.
“This was between 10.30 and 11. We contacted all our arrivals and told them to make their way slowly and get coffee when they come.”
The Central Tramway Cliff Lift was also forced to close due to the cordons.
Specialist teams conducted thorough checks of the building and surrounding area but found no evidence of any threat to public safety.
The police cordons were removed at approximately 4.30pm and staff and guests were allowed to return to the buildings.
A statement on the police website read: "The safety of everyone in the area and the emergency services who attended is our priority and we thank the staff, guests of the hotel and members of the public for their patience while we worked to establish the circumstances around the incident."