The fire broke out at the Hotel Virat international on Tuesday morning and soon engulfed the adjacent SSJ International Hotel, gutting both buildings.
Fire tenders were rushed to contain the blaze. It took more than two hours for the fire fighters to douse the raging flames.
Senior Superintendent of Police (SSP) Deepak Kumar said the fire started in the basement and soon leaped to the upper floors.
Senior district officials were present at the spot and overseeing search and rescue operations.
Police officials told IANS they can still not rule out the likelihood of some people or bodies trapped inside the hotel rooms.
The five victim include a woman and a child. They were staying at the Virat International Hotel.