Officials and management suspect sparks from fireworks started the inferno.
In 2018, Leopard Beach was feted as Africa’s leading family resort for the second year running.
It was also named Africa’s leading resort and the continent’s top spa resort for the third year in a row.
At least 200 guests were evacuated when fire broke out at Leopard Beach Resort in Diani on Sunday night.
The fire spread to two cottages, destroying property valued at millions of shillings.
Devolution Cabinet Secretary Eugene Wamalwa was among the guests at the resort.
Kwale County Police chief Tom Odero said the guests were taken to nearby hotels. He added that the blaze started around 10pm.
Authorities suspect the inferno was started by sparks from fireworks during a wedding, he said.
“While we admit there were fireworks, investigations into the incident have been launched,” Mr Odero said, adding that police officers were collecting samples from the scene.
He said a help desk has been established at the hotel.
“It is a tragic incident but there were no injuries,” the police boss said, adding that the fire spread fast due to strong winds.
The neighbouring Warandale and The Governor cottages were destroyed by the blaze.
Firefighters from the county government, security companies and the navy brought the inferno under control after several hours.
The fate of the hotel workers remains unknown.
The Governor cottages caretaker Karisa Katana Ngala said three houses and a store were destroyed.
“We heard an explosion at the hotel followed by a fire that quickly spread to our premises,” he said, adding that he could not estimate the losses.