A guest house in Rustenburg burned to the ground in the early hours of Saturday morning, police said.

"Police saw smoke coming from the Palm Lodge," Rustenburg police Senior Superintendent Kebaakae Metsi said.

The lodge is across the street from the police station.

Police investigated and found the hotel was burning, with guests still asleep. They proceeded to evacuate the building.

"Thanks to police action all the people were saved and no one was injured," Metsi said.

The lodge, which had a thatched roof, burned to the ground.

Police are investigating a case of arson, Metsi said. - Sapa