The avalanche follows a series of four earthquakes which struck central Italy on Wednesday.
People left homeless by Wednseday's quakes had been relocated to hotels in the region, but it wasn't immediately clear who was staying at Hotel Rigopiano, which is located in the Gran Sasso National Park.
Firefighters who fled to the hotel to assist in rescue efforts have described the dramatic scene:
"[It is] a tragic mix between an earthquake and an avalanche; the hotel has been swept away, only a little piece remained upright."
Fire brigade communications officer Luca Cari added that "there are tonnes of snow, uprooted trees, debris that buried the area where the hotel was".
Dog units have been used in the search, but have been unsuccessful in finding bodies so far.
"We are calling out but nobody is answering," rescuers said.
A health operator specialising in resuscitation has rushed to Hotel Rigopiano along with additional rescue workers.
Rescue vehicles, including ambulances, have been blocked by snow about two metres high some nine kilometres from the hotel.
Abruzzo Alpine rescuer Antonio Crocetta and his team were the first to arrive at the scene, and had to use skis to reach the hotel because of the heavy snow that has hit Italy in recent days.
Firefighters are reaching the scene via helicopter and a track vehicle that can carry up to eight people.
Rescuers said that they were continuing to dig, adding that "it's extremely difficult" to break through the rubble and snow.
It is believed that the avalanche was a result of the preceding earthquakes, and that hotel staff and guests have been buried under the snow and rubble for almost 24 hours.
As the desperate search for life continues at the hotel, President Sergio Mattarella has recognised the efforts of rescue workers.
"I thank the relief workers for their abnegation, working in extreme conditions caused by the coincidence of seismic shocks and exceptional snowfalls,” Mr Mattarella said.
“This condition demands great unity of the national community; everyone, for his part, must act with intelligence and responsibility to help ease the suffering of the people involved."
With ANSA