Hamilton CFA lieutenant Heath Bunting said emergency services responded to the fire at the Commercial Hotel in Hamilton's Lonsdale Street shortly after 9am.

"Management arrived this morning to prepare for the day's business and noticed the smoke emitting from the chimney both externally and internally," he said.

"They've placed a call to the fire brigade and attempted to put it out with a dry powder extinguisher but the fire was half way up the chimney of a two story building.

"We arrived at the scene and attempted to put fire out by creating steam at the bottom but it didn't work."

Mr Bunting said the Warrnambool Fire Brigade soon arrived with its aerial pumper.

"They made the hour-long trip up which was good because we were unable to do anymore at that point," he said.

"The fire was located between the first floor ceiling and the second floor ceiling, inside the chimney and inside the wall.

"A firefighter got on the roof and guided the aerial pumper as it put water down the chimney. Meanwhile, we had volunteers down in the building collecting the water as fast as they could to not cause damage inside the premises."

Mr Bunting said the incident was contained within the chimney and the hotel was not damaged.

Southern Grampians Shire Council closed one lane of traffic at Thompson Street, between Gray and Lonsdale streets, as firefighters worked to extinguish the fire.

The incident is one of several chimney fires across the south-west this winter. People are urged to clean out their chimneys and flue prior to use.

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