Al-Shabab militants said they have taken control of a hotel near the centre of the Somali capital Mogadishum reports BBC.
Nine people were injured and carried away from the hotel, said the head of Mogadishu's Aamin ambulance services.
Somali police said attackers detonated two explosives outside the hotel, before entering the building and opening fire.
The militant group claimed to be in control of the complex and said they "are shooting everyone".
The Hayat is said to be a popular location for employees of the federal government to meet.
Unverified images circulating on social media appeared to show smoke billowing from the hotel while shouting and loud bangs can be heard there.
Bd-pratidin English/Golam Rosul