The 12-hour gun battle between two holed fidayeens and security forces ended in Srinagar on Friday morning after both the attackers were killed.
"The operation is over. Both the attackers have been gunned down. The camp area is now being searched. Three paramilitary central reserve police force troopers were injured in the gunfight," a senior police officer said.
The operation had to be suspended on Thursday evening because of darkness as the security forces maintained a tight cordon around the hotel building to ensure that the holed up militants did not escape.
With the first light on Friday, the operation resumed.
Two heavily armed suicide attackers late on Thursday evening hurled grenades and used heavy automatic fire to force their entry into the Boulevard Hotel on the banks of the Dal Lake.
The attack came when people were busy in the Eid eve shopping. It came hours before the three-day long unilateral ceasefire announced by the Muzaffarabad based United Jehad Council came into force.
Earlier report: Attack on CRPF headquarters