A fire destroyed rooms and equipment at Masai bar and hotel in Diani, Kwale County, on Friday night.
Msambweni divisional police commander Joseph Chebusit said it started in one of the rooms in the hotel section.
"We are yet to establish the cause," Mr Chebusit told the Nation by phone, adding that fighter fighters put it out.
He said the bar side was most affected, according to a preliminary assessment.
The incident came two weeks after one at Leopard Beach Resort, which saw 200 guests evacuated.
That fire spread to two neighbouring cottages destroying property worth millions of shillings, including six blocks of houses with 209 rooms.
The resort's operations have since resumed.