The fire broke out at Arpit Palace Hotel located on Gurudwara Road in Karol Bagh.
The Union tourism minister said there were a lot of wooden structures inside, which may have helped the fire spread.
The blaze was brought under control around 7 am. Most victims died of suffocation, Fire Chief Officer G.C. Mishra said.
"A 43-year-old woman suffered 45 per cent burn injuries", he told reporters, adding that 13 of the bodies had been taken to Ram Manohar Lohia Hospital, two to Lady Hardinge Hospital and one to BLK Hospital.
Authorities said an electrical short circuit may have started the fire, but added an investigation has just started to look into possible causes.More news: Bahraini footballer Hakeem al-Araibi set to be released by Thai authorities
More news: Quebec Mosque Shooter Set To Receive Longest Life Sentence In Canadian History
More news: Toyota Tacoma Review, Ratings, Specs, Prices, and Photos
Videos recorded on their cell phones by the eyewitnesses showed flames emanating out of the top floors of the hotel building.
Frequent raids by civic authorities to enforce building codes, fire safety measures and evacuation procedures in New Delhi have failed to curb violations in this rapidly expanding city of more than 18 million people. More than two dozen fire engines were sent to the spot after the fire broke out on the top two floors around 4 am.
At least 17 people are dead as a result of the blaze overnight in New Delhi, India. Gautam Buddh Nagar district magistrate BN Singh had said more than 60 people were inside the hospital when the incident occurred. "Apparently, there were lapses (from the hotel administration's side) and action will be taken against those found guilty".
Death of 17 persons in a hotel fire incident in Delhi has once again highlighted how the national capital continues to sit on fire, thanks to the nexus between businessmen, government officials and politicians.
Deeply saddened by the loss of lives due to a fire at Karol Bagh in Delhi. The last renewal was done on May 25, 2018 and was valid till March 31, said an official of North Delhi Municipal Corporation."The stamped happened as the stairs were narrow".