Police are investigating the armed robbery of a hotel in South Townsville late last night.

Just after midnight three armed men have entered the hotel on Palmer Street and threatened staff at the hotel making demands for money.

The men have forced staff into an office area and have then taken a sum of money and a number of mobile phones from staff before leaving the hotel.

The men left the hotel carpark in a black utility which was located later in Morehead Street.

The three men were all wearing long sleeve hoody type clothing and long pants with their faces covered. One man was armed with a knife, one with a machete and the other with a small axe.

No one was physically injured as a result of the robbery.

Police investigations are continuing.