The City Light hotel in Secunderabad, adjacent to the state capital of Hyderabad, came down Monday morning and authorities feared the death toll could rise as more people might be trapped in the rubble, the Times of India reported.
At least 20 people were injured and three workers at the facility were yet to be accounted for, the report said. Most of those killed also were hotel workers.
The report quoted eyewitnesses that many of the workers and customers on the first floor managed to escape but those on the second floor were trapped.
Rescue effort was continuing Tuesday. At least seven people had been pulled out of the rubble.
"The building crumbled before we realized what was happening. We ran out of the building and saved ourselves," one of survivors told the newspaper.
Several buildings in the area had been listed as being dilapidated but the hotel was not on the list, the report said.
The Press Trust of News Agency said the hotel was about 80 years old.