The area was reopened around 4 o'clock after a police bomb robot had destroyed the bag.
The hotel is located in the same complex as Gothenburg's central train station and bus terminal.
Police had asked people in nearby buildings to stay away from windows facing the sealed area, according to news agency TT.
The building includes a hotel, shops and office space.
Head of the police operation Leif Nerhall decided to stop all traffic on Nils Ericsongatan, which normally carries bus, car, and trolley cars. Buss traffic to and from Nils Ericsongatan was also been affected.
The brown briefcase which caused police to seal off the area was left near a taxi stand outside the hotel, and there was no explanation as to how it came to be there.