While the Delhi government ordered a magisterial probe, home minister Satyendar Jain said he has directed the fire department to inspect buildings which are five-storied or more and submit a report within a week.
As many as 25 fire tenders were rushed to the spot, and at least 35 people were rescued from the five-storey building, it is learnt.
An investigation is underway, but the blaze is believed to have been caused by a short circuit.
A woman and a child also died in the blaze.
Two officials including the General Manager of Arpit Palace Hotel were arrested and an FIR was registered under section 304 (culpable homicide not amounting to murder) and 308 (attempt to commit culpable homicide) of the Indian Penal Code, according to the Indian Express.
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"This hotel had been built up to six floors. Then I took my bag and rushed downstairs", said Trivedi who was occupying a room on the first floor of the hotel.
Jain said hotel guests tried to flee through the hotel's narrow corridors, panelled in wood. At the time of writing, the fire had been extinguished, and a cooling operation launched.
A number of hotel guests have been killed, including a child, when they were suffocated in smoke from a severe fire that ripped through a hotel.
President Ram Nath Kovind and Prime Minister Narendra Modi have condoled the loss of lives and expressed hope that the injured will recover soon.
They said wooden panelling in the corridors of the hotel contributed to the quick spread of the fire. Those staying in the hotel included a group of tourists from Myanmar, broadcaster NDTV said, adding that authorities were trying to ascertain their whereabouts. We were all ready early morning to go to Haridwar when suddenly there was a power cut. I immediately came to the room and opened the room for fresh air and we managed to escape. He further said that a license is issued to a hotel only after inspection.