No one was injured in a small fire at the Atlantic Sands Hotel in Rehoboth Beach late Sunday night.

The fire occurred just before midnight. The Rehoboth Beach Volunteer Fire Company, assisted by Lewes and Bethany Beach Volunteer Fire Companies, responded to the scene to find alarm bells sounding and an evacuation in progress.

The fire was located in the laundry area of the basement, where one sprinkler system head had been activated. The Delaware State Fire Marshal's office determined the incident occurred due to a malfunction in a clothes dryer. Damages were estimated at $5,000.

Guests were allowed to re-enter the building at about 1:30 a.m.