The fire, which broke early this morning, engulfed the entire market complex destroying several shops, they said.
Around 12 fire engines, including from neighbouring Mathura and Firozabad districts, were pressed into service, an official from Rakabganj police station said.
After the fire broke, the guests of the hotel rushed to the upper floor of the building as it was not possible to escape through the stairs.
They were evacuated after breaking a wall of the hotel, a senior police official said, adding there was no loss of life, as everyone in the hotel was evacuated safely.