Frequent raids by civic authorities to enforce building codes, fire safety measures, and evacuation procedures have failed to curb violations in a rapidly expanding city of more than 18 million people.
Most of the victims were sleeping when the fire broke out, believed to have been caused by a short circuit, media said.
The dead included a woman and a child who had tried to escape by jumping from a fifth-floor window of the 65-room hotel in the shopping district of Karol Bagh, some of which had been booked by a wedding party.
Television showed pictures of flames leaping from the top floor. Those staying in the hotel included a group of tourists from Myanmar, broadcaster NDTV said, adding that authorities were trying to ascertain their whereabouts.