Two people were taken to hospital after a fire at a small apartment building in Sydney early Tuesday morning.

The fire broke out at 78 Charlotte St., a two-storey structure, at around 2 a.m.

There were nine tenants in the building and two of them were treated in hospital for minor burns and smoke inhalation.

Most of the damage was done to one apartment unit but there is some smoke and water damage throughout the building.

The Red Cross has arranged for the tenants to stay in a motel.

There's no word on what caused the fire.