Photo by Isle of Wight County Press Camera Club member Gavin Hackshaw.
Four Hampshire and Isle of Wight Fire and Rescue crews are in Sandown.
Flames have been spotted in buildings at the site of the derelict Grand Hotel, off Culver Parade.
Crews from Sandown, Shanklin and Ryde are on scene.
They were alerted just after 4pm.
Smoke could be seen behind the main building on Yaverland seafront, with local people saying it was the hotel site's outbuildings that were affected.
Photos by Gavin Hackshaw, Isle of Wight County Press Camera Club member.
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