"Fire broke out in Hotel Zehgeer in Gulmarg at 11:20 am resulting in a severe damage to the building," an official of the Fire and Emergency Services Department said.
He said the upper storey of the building was gutted while the ground floor was also damaged severely.
The official said the fire has been put out and there are no reports of anyone getting injured in the process as all the tourists and staff were evacuated to safety.
He said five fire tenders were pressed into the service to douse the flames.