Streets around the Station Hotel in Dewsbury, close to the town’s market, were cordoned off last night and remained shut this morning.
Police are continuing investigations in the area after reports of shots being fired in Huddersfield yesterday evening.
Officers were called to Moor End Road at Crosland Moor at around 5.14pm.
The suspects fled the scene in a silver VW Golf in the direction of Dewsbury.
A 31-year-old man has been arrested in connection with the incident.
He remains in custody.
Police said they recovered the vehicle and were investigating whether it was used in the firearms incident.
DCI Ian Scott, of the Homicide and Major Enquiries Team, said: “Our enquiries into this incident are ongoing and I would like to urge members of the public who may have witnessed anything in the area or seen this vehicle, to contact the police.
“Anyone with information is asked to contact Kirklees CID via 101 quoting log number 1210 of 16 August or contact independent charity Crimestoppers anonymously on 0800 555 111.”