Waterloo Road was closed and residents were evacuated from their homes after a fire broke out in a block of flats on Tuesday night.
There are no reports of injuries.
Mawdley House is a Southwark Council block of flats on the Webber & Quentin Estate.
After the hotel reopened it made its foyer available for displaced residents.
The fire brigade gave the all-clear for Mawdley House residents to return to their homes as the fire had been contained in a single flat.