Mopping up has started at the fire-hit Courtney Hotel in Manor Park, and at the shops below, which were damaged by water following a blaze this morning.

Dozens of residents and staff fled the three-storey building in Aldersbrook Road before 40 firefighters arrived on scene at about 2.30am to tackle flames on the first and second floors.

The fire was under control by 5.30am. Witnesses said the residents were taken away from the scene by coach to alternative housing.

The incident also affected the parade of shops situated below the hotel. Money-Saver Superstore has been temporarily closed for repairs after water from burst pipes caused the ceiling to collapse.

A spokesman for the hotel said they were awaiting the all-clear from the London Fire Brigade before they could re-open and allow the residents back in.

He said: “We’ve got to have a risk assessment and there is lot of work to be done.”

He was hopeful of opening over the weekend.

Mahmood Ellahai, who runs Money Saver Superstore with his brother Mazhar, said it would be several weeks before they would be able to re-open.

He said: “We couldn’t actually get in until about 9am and everything has come down, they shut down the electrics so our frozen food and our ready meals will all go off.

“It could be weeks before we open.”

An investigation is under way into the cause of the fire.