Two people have been arrested in an incident reportedly involving a firearm at the Peninsula Hotel.
Police blocked off all entrances to the pub as they negotiated with a reportedly armed man holed up in the pub’s rear.
A police Critical Incident Response Team arrived shortly after and took up position at the hotel.
According to reports on social media a couple overstayed at in one of the hotel’s rooms. When staff went in to wake them they spotted a gun and immediately called police.
Witnesses gathered on the Bellarine Highway to watch as the event unfolded.