"The fire has been doused, but smoke still persists. Things are under control," an official said on the incident at Hotel Chancery Pavilion.
No casualty has been reported in the incident that came to light when some hotel staff saw smoke emanating from the basement, the official said.
The guests were evacuated from the building after the staff raised alarm about the fire. Seven fire tenders rushed to the spot.
Fire officials suspect electrical short circuit to be the cause for the fire.