Asahi: Fire breaks out at Palace Hotel Fire broke out at the Palace Hotel in central Tokyo's Chiyoda Ward just after midnight Thursday, forcing the 257 guests and 56 employees on duty to evacuate, firefighters said. Guests and staff huddled in front of the entrance to the hotel, which is across from the Imperial Palace, until they were given the all-clear around 4:30 a.m. to re-enter the building.