Three suspects have been arrested by the police for the armed robbery.
It was approximately 6:00PM French time when five armed men broke a shop window inside the hotel and stole approximately $5.33 million AUD worth of jewellery.
The city's police commissioner issued a statement on Twitter thanking officers for their quick reactions, which led to the arrest of three men.
"Two others got out the back door of the hotel and were seen running away, and then getting on mopeds".
She added: "One man wearing a ski mask ran from the bar door to the front of the bar right past my father".
A witness told Sky News they heard multiple rounds of gunfire.More news: Wendy Williams' harsh comment about Kylie Jenner's plastic surgery
Some of the thieves were thought to have been armed with axes.
Another put the figure at 4.5 million euros ($NZ7.5 million), but said that a bag had been recovered possibly containing some of the loot.
The Ritz-Carlton is located in the 1st arrondissement and overlooks the Place Vendôme.
The hotel, owned by Mohamed Al Fayed, reopened last year after four years of refurbishment work.
Princess Diana had dined in the hotel's Imperial Suite on August 31, 1997, shortly before her tragic death in a vehicle crash in Paris.
In more recent history however, the Ritz has become known as the place where Britain's Princess Diana spent her last hours before a auto accident in a tunnel in the French capital while being pursued by paparazzi.