Police and firefighters were called to the Premier Inn in Queen Victoria Road at 5-18am on Wednesday following reports a room on the ground floor had been set on fire.
After receiving reports there was a person inside the building fire crews wearing breathing apparatus made a thorough search of the premises but confirmed there were no casualties.
Crews from Burnley, Nelson and Padiham were at the scene for an hour and they put the fire out with a hosereel jet.
The woman was arrested at the scene and questioned by detectives.
In a statement Lancashire Police confirmed Linda Ingham, of Barkerhouse Road, Nelson, has been charged with two counts of arson with intent to endanger life..
She was due to appear before Blackburn magistrates yesterday.