Investigation under way
Firefighters are investigating the cause of the blaze, a spokesman for the regional government of Vorarlberg said.
"According to information from fire services, the fire started in a room on the first floor at the back of the building," he said.
Officials said the deaths occurred from smoke inhalation.
Markus Natter, who led the firefighters said: "The biggest problem was the smoke. People could simply not get out through the stairwell."
The fire was the deadliest in Austria since 155 people died in a blaze on a funicular train in Kaprun in November 2000.