Four people were injured and taken to hospital in Bourg Saint Maurice – none with life-threatening injuries.
Many fled the building in only their night clothes leaving the rest of their belongings behind.
The fire is thought to have started started in a garbage container and spread to the wooden facade of the building.
The mayor of Aime-la-Plagne, Corine Maironi-Gonthier, said “this damage is significant.”
The property is used by the UK company Crystal SKI.
In a statement, Crystal parent TUI 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 that all customers were safely evacuated and have been moved to a nearby location where our team is taking care of them.
“Guests are being provided with necessary essentials needed including refreshments, food and clothing.