The two-story Cinar Hotel collapsed before dawn Wednesday, killing two people and leaving a woman and her daughter buried inside, rescue workers said.
About 30 guests in the budget hotel, some of them wearing pajamas after being jolted from their sleep, made their way to safety. Workers used dogs and sound detectors to find and rescue 14 others.
Can Avci, head of the rescue team, said 18 of the survivors were hospitalized with cuts and bruises.
Rescue worker Murat Uzan said teams had located the bodies of two guests -- a Turk and an Iranian -- who died in the collapse. They were still searching for the woman and daughter, from Eastern Europe, believed to be trapped under the rubble.
Rescue efforts were halted by late evening after debris and earth slipped, making the site unsafe.
The hotel caved in when a subway tunnel being built underneath collapsed, the mayor's office said.