A fire at the Grand River Hotel in Cambridge is being treated as suspicious.

The building at 1102 King Street East in Preston houses both renters and tenants.

Some of them were still in bed when they were woken up by smoke at 9:30 a.m. Friday.

James Heath, who works across the street at Thrive Studios, says he watched as residents tried to escape.

“[The man] just broke the screen and then crawled out the window and hopped onto the awning.”

Four people weren’t so lucky.

Their nearest escape route was the roof, where they had to be rescued by firefighters.

All four were treated for smoke inhalation.

Officials say one person was taken to hospital with burns to his face and head.

Approximately 20 people have been displaced.

The owner of Wuddup Dog, a hot dog restaurant just a few doors down from the Grand River Hotel, welcomed residents into his shop.

“A couple of guys here, they had no shoes and very little clothing,” says Todd Johns. “I had my girlfriend run down to the Value Village and Dollarama.”

He also offered them free food and drinks.

“We are all neighbours. We got to look out for each other in times of need.”

The Canadian Red Cross will also be setting all displaced residents up in hotels and providing them with food and clothing.

Investigators believe the fire started near one of the entry doors on the second floor.

Damage to the building was initially pegged at $350,000 but that has now increased to approximately $500,000.

The Ontario Fire Marshall has been called in to investigate.