The flames broke out Tuesday on the 5200 block of Ocean Avenue at the Windward Motel. Firefighters were called to the scene just after 11 a.m., officials said.
Neighbors said they called 911 as the block filled up with smoke.
"You could feel the heat, you could smell it. You felt like you were in a situation where you weren't comfortable. You needed to get out," said Maria McBride, who is staying in a condo across the street.
She said she grabbed her dog and her family and ran.
Firefighters said the only people who were in the motel when the fire started were the owners and contractors.
According to investigators, the blaze was determined to be accidental and caused by welding work that was taking place on the second floor of the motel.
Firefighters said the wind made it a difficult fight. They surrounded the building with lines to protect properties close by.
"We chased the fire a bit. The wind was pushing it quite a bit, so we went to a second alarm before going to a third alarm because it was pretty manpower intensive," said Wildwood Fire Department Chief Ernie Troiano.
It took crews nearly two hours to bring the fire under control. The damage is estimated at $500,000.
No injuries were reported.
Property records say the motel has been up for sale since February.
The ATF is assisting in the investigation.
MORE TOP STORIES: