The escalation comes amid a standoff in Sanaa between the two main components of the rebel alliance, Shiite fighters from the north known as Houthis and loyalists of ousted President Ali Abdullah Saleh. There are mounting fears of street violence.
There were conflicting reports on the identity of the victims of the hotel strike, with doctors saying they were farmers and officials and witnesses saying they included rebels. The coalition has been battling the rebels, who control Sanaa, since early 2015.
Bodies were still being retrieved from the rubble, witnesses said. Another airstrike hit a checkpoint manned by the Houthis a few kilometers (miles) from the hotel, they added.
The officials spoke on condition of anonymity because they were not authorized to talk to reporters. The witnesses requested anonymity for fear of retribution.
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Footage of the area aired on al-Masirah TV, a Houthi-run satellite news network, showed bodies hanging out of a simple cinderblock building. Bystanders wrapped mangled corpses into blankets to try to carry them away.
Physician Ali al-Rakmi, who was helping with rescue efforts, said there were more than 100 people inside at the time of the attack, all qat farmers. The plant's leaves are chewed for a stimulant effect, a widespread tradition among Yemeni men.
Al-Rakmi said they had retrieved 35 bodies so far.
Fahd Marhab, head of the Umrah hospital, about 10 kilometres from the site of the airstrike, said there were no wounded and that all the people in the hotel were killed in the 3 am airstrike. He also said that they were mostly farmers.
There was no immediate comment from the coalition.
The Saudi-led coalition is waging an extensive air campaign against the Houthis and forces loyal to Saleh, which together control much of northern Yemen, including Sanaa. They are trying to restore the internationally recognised government of President Abed Rabbo Mansour Hadi.
The airstrikes have hit schools, hospitals, and markets, killing thousands of civilians and prompting rights groups to accuse the coalition of war crimes. Activists have called upon Western countries, including the United States and Britain, to cease their military support for the coalition.
The coalition has recently stepped up airstrikes in and around Sanaa, targeting army compounds and other Houthi locations.
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