At least 18 more people were injured when the two-storey City Light hotel came crashing down on Monday morning.
Police said it was not clear how many people were trapped under the debris at the hotel, located near Hyderabad.
Correspondents say such incidents are common in India and are often blamed on poor construction practices.
About 25 people were working at the hotel, located on a busy road in Secunderabad, when one of its kitchen walls collapsed, burying some of the employees, senior police official B Surender told the AFP news agency.
"The building was very old and the walls showed cracks, according to people working nearby," he added.
Last month, nine people were killed in two separate building collapses in the western city of Mumbai.
In April, 74 people were killed in another building collapse on the outskirts of Mumbai.