Police have shut down part of downtown Vancouver after a distraught man with a handgun walked into the Fairmont Pacific Rim hotel early this morning.

Police say the man, believed to be in his 20s, walked into the lobby of the hotel around 2:30 a.m. PT and showed his gun to staff.

He is now in a public area by himself on the second floor. Officers have been negotiating with him, but so far he has only asked for water and made no demands, said police.

1038 Canada Place, Vancouver, BC

"Our negotiators are speaking with this man, trying to figure out what he wants and why he is here. We do not know who he is at this point," said Const. Brian Montegue.

No shots have been fired and no injuries have been reported.

Police have told guests to stay in their rooms and traffic around the hotel has been blocked off for several blocks.

The hotel is located in downtown Vancouver near Burrard Street and Canada Place.