The V Lounge at the Red Lion Inn On Douglas had to be shutdown after fire broke out around 1:30 Thursday afternoon.
Firefighters responded to the scene and managed to knock the fire down quickly. Fire investigators are trying to determine the cause of the blaze but say they do not believe it is suspicious at this time.
Saanich Fire Captain Dale Peebles says the while the fire was put out quickly, there is extensive water damage.
Total damage is estimated at $150,000.