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More than 60 people were evacuated from the hotel premises and the 230-year old building was almost completely destroyed by the blaze, authorities said.
Firefighters stand in front of the Traube Tonbach Hotel after the blaze.
Andreas Rosar/picture alliance via Getty Images
More than 155 firefighters battled the inferno after an alarm went off after 3 am on Sunday morning, police said, adding that the flames were extinguished by 11.30 am local time.
The Traube Tonbach Hotel was home to several gourmet eateries and bars, including Michelin-starred Köhlerstube, and Schwarzwaldstube, which held three of the prestigious stars.
Police said the cause of the fire is still unknown, as investigators cannot yet enter the building.