There were 10 CFA vehicles on scene from Murtoa, Horsham, Ballarat City and Dooen brigades
Victoria Police members and Ambulance Victoria were also required to attend the incident scene.
When CFA crews arrived on scene they found the kitchen's hotel was fully alight.
CFA members conducted a search and rescue inside the building and retrieved an occupant and his dog from the hotel.
By 11.55pm crews had slowed the spread of the fire within the building and brought it under control by 1.06am.
Crews remained on scene for a few more hours to mop up and ensure no further flare ups and a stop was issued at 4.24am.
Fire investigators will assess the scene later this morning.