San Francisco Police Department engage with possible shooting suspect in standoff at Palace Hotel on New Montgomery Street

Police in San Francisco engaged in a standoff with a possible shooting suspect at the Palace Hotel in downtown Saturday afternoon, after gunshots were reported in the unit block of New Montgomery Street.

Police responded to the less than 100 block of New Montgomery Street, known as the unit block, at about 12:16 p.m. after receiving calls about gunshots, according to SFPD spokesperson Officer Robert Rueca.

A possible suspect refused to come out of the building where the shots were reportedly fired. A hostage and crisis negotiating team was on the scene as of about 3 p.m., Rueca said in an email.

Rueca said part of the building around the suspect was evacuated. There were no injuries at that time.

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A phone operator at the Palace Hotel said there was a police response at the hotel but could not confirm if there was any shooter.

The hotel also lost power on Saturday along with tens of thousands of PG &E customers throughout the city in an unplanned outage, the cause of which remained unknown as of Saturday afternoon.

Market Street was closed to traffic on between Annie and New Montgomery streets. The SFPD asked the public to avoid the area while a perimeter is established.

Stay with ABC7 News for the latest details on this developing story.

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