The fire broke out at about 1pm on the second floor of Hotel Solitaire on Haridwar bypass road in the city and spread to its third and fourth floors, police said.
However, no one was hurt as people were quickly evacuated, they said.
Firemen were immediately pressed into service who have brought the blaze under control, they said.
Though the exact extent of damage is yet be assessed, property worth lakhs must have been destroyed as 20 rooms on three floors of the hotel caught fire, authorities at Nehru colony police station informed.
They said the cause of the fire is being ascertained.
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