The body of the deceased person was located but could not yet be recovered, said police, who established contact with some of those still trapped.
"Due to the nature of the damage, this is an extremely demanding operation," a police statement said, and the building in the town of Kroev could only be entered by emergency responders with the utmost caution.
Firefighters and paramedics gathered outside the building, whose upper floor caved in about 11pm on Tuesday (local time).
One emergency responder was seen carrying a barefoot woman out of the damaged building.
Investigators believe 14 people were in the hotel when the incident occurred, five of whom escaped without injury.
Police said 31 neighbours were also evacuated from their homes for their own safety.
The Moselle region is known for its picturesque towns and vineyards on steep river banks.
