On Wednesday, Da Lat authorities issued the fine and apologized to the tourists.
On January 29, Nguyen Thi Kim Thoa, 57, owner of Dream Flower Hotel on An Binh Street, refused to let the group of six tourists check into their rooms though they had already paid for the rooms.
The hotel owner claimed they were foreigners and she feared contracting the virus from them. In addition, she also was alleged to have offended them by insulting their birth origin.
The tourists filmed the hotel and posted their story on social media, triggering a public backlash and prompting local tourism officials to step in.
Le Anh Kiet, a local tourism official, said the incident tainted Da Lat's tourism image.
The hotel just opened its doors in December last year.
Situated on a plateau around 1,500 meters above sea level, Da Lat enjoys year-round cool weather and is famous for its French colonial heritage.