Al Shabaab Islamist militants claimed responsibility for the attack on the Wehliya Hotel and said they had also laid siege to another hotel in the city.
"We believe they are al Shabaab fighters. So far we understand they killed four people inside the (Wehliya) hotel," said Nur Ali, a police officer, adding fighting was still going on inside.
Another police officer Omar Ali, said security forces had arrived at Wehliya and were engaging the attackers on the perimeter. The hotel is frequented by top government officials.