Police involved in a siege at Sydney hotel

A siege is under way at a hotel in Sydney's historic Rocks area and police are trying to talk to a man they believe is holed up in one of the rooms.

A hotel guest reported an incident between two guests at 4.50pm (AEDT) on Tuesday in the hotel on Harrington Street.

Police said they were attempting to establish communication with the man they believe is in one of the hotel's rooms.

Harrington Street and Essex Street have been closed and diversions are in place.

Police could not say whether the man was armed.