The fire broke out in Torn Hotel on Wednesday, the local emergency services said in a statement, adding that blaze quickly spread to four nearby cars.
The blaze covered about 800 square meters of the building, the services stated.
Local witnesses told RIA Novosti that they saw children jumping from the hotel’s windows.
“Five children – girls – jumped from the second floor, some guys were catching them,” an eyewitness said.
Rescuers found two bodies inside the building, emergency services told TASS, adding that both of the deceased were employees of the hotel.
More than 400 people, including 61 children, have been already evacuated from the building, RIA Novosti reported.