Fire broke out in Alpine Hotel at Pahalgam, 100 km from here, late last night, a police spokesman said.
He said two storeys of the hotel were damaged in the fire, which was doused by personnel of Fire and Emergency services.
No one was, however, injured as tourists and hotel staff fled to safety on noticing the fire, the cause of which was not immediately known.
Pahalgam, which also serves as the base camp for Amarnath pilgrims, is full of visitors, most of whom are camping in tents due to shortage of hotel rooms.