SOUTH LAKE TAHOE (CBS13) — A gun battle between police and a suspect turned into a SWAT standoff early Friday morning at a South Lake Tahoe hotel.

The incident started when police received a 3 a.m. call on Friday reporting a man trying to break into a room at the Three Peaks Resort in the 900 block of Park Avenue, according to a statement from the South Lake Tahoe Police Department.

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Police say 23-year-old Orangevale resident Joesph Hill showed up armed with an assault-style rifle outside a guest’s room.

“The girls that were occupying the room peeked the hole and found out it was a guy who had a gun,” said Hotel General Manager Marlena Navarate.

She says those horrified guests quickly called the front desk and South Lake Tahoe Police.

“It’s very terrifying because my employee is actually by himself,” said Navarte.

Police say the man with the gun was trying to break into the room while shouting at the door.

“They overheard him saying ‘you killed my father, you killed my father,'” said Navarte. “He didn’t know where he was at or what he was saying.”

Police say Hill opened fire when officers surrounded the room.

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Surveillance video shows multiple rounds lighting up the sky. An officer returned fire, hitting Hill.

Police say Hill tried to run, and guests tell us he hid behind a stairwell a few feet away.

After a two-hour standoff with crisis negotiators, police say he finally surrendered.

“There’s this common thought that things like this don’t happen in South Lake Tahoe, but the truth is, they do,” said Chris Fiore with the City of South Lake Tahoe.

City leaders say this was a close call on a weekend when more snow is expected and the area, surrounded by hotels and busy with people.

“I’ve stayed here every year for the past five years and never anything like that, it’s crazy though,” said Sean Brizentene.

Long-time visitors say no one expected this to happen, turning sleepy South Lake Tahoe upside down overnight.

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The suspect was taken to the hospital for treatment but is expected to be okay. As a matter of protocol, the officer involved in the shooting is on administrative leave.