The hotel was put into quarantine after it was found that an Italian doctor who recently stayed there had been put into isolation at a hospital.
He was the third case identified in Spain. A German tourist on another of the Canary Islands and a British man in Mallorca have also tested positive.
Health authorities could not immediately confirm the hotel lockdown but said they would test tourists and staff there.
Betts said guests had been allowed to have breakfast in the hotel restaurant but were instructed to then return to their rooms.
Local media report that around 1,000 guests are staying at the hotel.