Police have been notified of an armed man entering the closed hotel around 9.30am.
Police say they were notified that a man with a firearm entered the closed hotel on the Princes Highway between Cann River and Orbost around 9.30am.
A woman attended the hotel and was confronted by a man who was in possession of a firearm.
He did not threaten the woman or make any specific demands, and she was able to escape and alert authorities.
A gunman is holed up inside the Bellbird Hotel btw Orbost and Cann River. Hwy blocked in both directions.
A gunman is currently holed up at a motel at Bellbird Creek in Gippsland. A woman confronted by the man got away uninjured.
Victoria Police spokeswoman Natalie Webster said police had cordoned off the hotel, which is on the Princes Hwy between Cann River and Orbost.
A woman attended the hotel this morning and was confronted by a man of Asian appearance who was in possession of a firearm, Ms Webster said.
The man did not threaten her directly or make any specific demands.
The hotel was closed at the time.
She left the hotel and reported the incident to police.
Critical Incident Response Team officers are on their way to the scene as local members have cordoned off the area and blocked the Princess Highway at Cann River and Orbost.
There are no diversions in place, so those in the area are asked to avoid non-essential travel during the police operation.
The Bellbird Hotel is located roughly halfway between Cann River and Orbost in Victoria’s East Gippsland region and is a popular throroughfare for holiday makers on their way to New South Wales beaches including Meriumbula and Eden.
The hotel offers both accomodation and pub meals.