The prospects of anyone being rescued alive from the ill-fated Hotel Rigopiano looked bleak with rescue efforts hampered by heavy snow that had blocked access roads to the remote site.
The three-storey building was hit by a two-metre (six-feet) high wall of snow late yesterday afternoon.
The first rescue workers only reached the remote site in the early hours today and it was midday by the time a snow plough and the first mechanical excavation equipment got there.
"We are trying to recover bodies," said fire service spokesman Luca Cari. Asked if there was any hope of survivors, he told AFP: "You never know."
He added: "The building was basically run over by the avalanche leaving it buried.
"I saw mattresses that had been dragged for hundreds of metres, which shows how big the search area is. There are tonnes of snow, tree trunks and all kinds of detritus."
Italian television showed images of piles of masonry and rubble in the entrance area of what they dubbed a 'coffin hotel'.
The four-star hotel's guests had been assembled on the ground floor awaiting an evacuation following the quakes that was delayed by snow-blocked roads when the avalanche struck.
The building was moved some 10 metres off its foundations by the force of the hurtling wall of snow.
Local officials confirmed two guests who were not inside when the avalanche struck had been rescued. They were suffering from hypothermia but not in any danger.
Officials said there had been 20 guests staying and seven or eight staff on duty at the hotel on the eastern lower slopes of the Gran Sasso mountain.
The first mountain police on the scene got there by helicopter with others following on skies.
They were quoted as saying there were no signs of life inside the building while one of their commanding officers told reporters: "There are many dead."
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