The Alberta Serious Incident Response Team is investigating the incident Monday at a northeast Super 8.
It says officers found the man in medical distress in a room but a security chain was on the door and he would not let officers inside.
Officers were concerned for his well-being and broke into the room.
The agency says a confrontation followed so police fired a Taser but it had little impact on the man.
An officer then shot the 27-year-old and he died at the scene.
No officers were injured.
A statement from ASIRT said it's believed the man was from Calgary. His name has not been released.
"ASIRT's investigation will focus on the circumstances surrounding the confrontation that resulted in the shooting of the individual," it said.