Several other people were injured and security forces rescued many others, including children, from the scene of the attack at Mogadishu's Hayat Hotel, they said.

The attack started with explosions outside the hotel before gunmen entered the building on Friday evening.

Gunfire could still be heard early on Saturday as security forces tried to contain the last gunmen, who were thought to be holed up on the hotel's top floor. It was unclear how many militants remained.

The Islamic extremist group al-Shabab claimed responsibility for the attack, the latest of its frequent attempts to strike places that are often visited by government officials.

There was no immediate word on the identities of the victims.

"We were having tea near the hotel lobby when we heard the first blast followed by gunfire," eyewitness Abdullahi Hussein told The Associated Press by phone

"I immediately rushed toward hotel rooms on the ground floor, and I locked (the door).

"The militants went straight upstairs and started shooting. I was inside the room until the security forces arrived and rescued me."

He said that on his way to safety he saw "several bodies lying on the ground outside hotel reception".

Australian Associated Press