Local media said three people were taken to hospital suffering the effects of smoke inhalation while a child was treated for an epileptic episode and was also hospitalised after a fire alarm was activated at 2.30am.
French newspaper Le Dauphine said all 431 guests and 53 staff were evacuated in around 15 minutes. It added the majority of guests at the Hotel Club MMV Plagne 2000 were British.
Other reports in the French media said the fire broke out in waste bins situated in the basement, with flames spreading up the wooden facade as high as the fourth floor of the seven storey building.
Around 90 firefighters reportedly attended the scene, with the fire still burning some nine hours after it broke out.
Crystal Ski said: "We would like to apologise to customers whose holiday has been impacted following a contained fire at the Hotel Club MMV Plagne 2000 this morning.
"We can confirm all customers were safely evacuated and were moved to a nearby location where our team took care of them. Guests have been provided with necessary essentials including refreshments, food and clothing.
"We would like to reassure customers their safety is our most important priority as we continue to monitor the situation with local authorities. We have arranged alternative accommodation and our team on the ground will continue to support our guests and provide regular updates.”
The Foreign Office has noted the incident in an update to its travel advice for France. "There is an ongoing incident following a fire on 9 April in the ski resort of La Plagne in the Alps. If you are in the area or planning to travel to the area, follow the advice of local authorities and check your tour operator’s advice."