A molotov cocktail has has been thrown inside one of Melbourne’s most-loved music institutions, The Tote in Collingwood.

Police and firefighters have sealed off a section of the hotel on the corner of Johnston and Wellington streets after the early-morning attack.

Molotov cocktail ... Collingwood's The Tote Hotel Credit:Gary Medlicott

A Metropolitan Fire Brigade spokesman said the molotov cocktail was believed to have been thrown near the hotel toilets about 2am today.

Hotel staff discovered the damage when they arrived this morning and alerted police and firefighters, who arrived about 11am.