GROVER BEACH, Calif. -

A Christmas Eve tragedy was prevented by the quick work of firefighters, after a fire broke out at the Grover Beach Inn.

Crews were originally called out to the fire around 4:30pm Tuesday night at the hotel, located on the 150 block of South 5th Street.  Crews evacuated the hotel, which houses disadvantaged individuals, as they assessed the damage.

According to Five Cities Fire, crews found a dryer and linens on fire in the laundry room.  They were able to contain the fire to just the room and knocked down the fire within an hour.  Tenants were then allowed to return to their homes.

The cause of the fire is still under investigation, but investigators believe towels in the laundry room may have had some chemical residue on them that could have sparked it.

Stay with us for more on this developing story.