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The former Prime Minister's departure marks a dramatic turn of events in Bangladeshi politics, with Hasina expressing profound sadness and shock over the turn of events.
Local authorities have launched an investigation into the arson attack, which they believe may be politically motivated, given the hotel's ownership.
In January, the 76-year-old Hasina won a fifth term as prime minister, with the opposition boycotting the vote, claiming it was neither free nor fair.
On Sunday, clashes erupted between protesting students and security forces in several key cities, including the capital Dhaka.
Her departure from office is expected to trigger a series of political maneuvers as the ruling Awami League scrambles to stabilize its leadership and chart a new course for the nation.
While election day itself was relatively peaceful, with few disturbances reported, the pre-election period was marred by protests and violence, including arson attacks that resulted in four fatalities. Bangladeshi authorities attributed much of the unrest to the BNP, accusing them of attempting to disrupt the electoral process.