The two hotel guests suffered serious injuries and were rushed to a hospital but died later.
Police said 30 people including the hotel's staff have been rescued. News agency IANS reported that six of them who were injured were shifted to the SSKM Hospital.
While the cause of the fire is unclear, nine fire tenders were rushed to the site and put out the blaze in three hours.
According to police, the fire started in the kitchen of the hotel at around 3 AM and spread to other areas including the ground floor.
Fire fighters and disaster management officials had to break open the glass window panes of the hotel for the thick smoke to pass out, an officer said
A few of them were rescued using ladders while others were guided outside the hotel by rescue workers, he said.
"Apart from hotel guests, there were workers who were stuck inside," the officer said.
(With inputs from PTI and IANS)