Gunmen have stormed the hotel in the Somalian city of Mogadishu, police confirmed.
The horrifying incident is expected to involve a suicide car bomber at the gate of the popular building.
MPs, foreign journalists and photographers are believed to be among the injured.
One blast was followed by a second explosion before loud fire was heard and police heard reports attackers were inside the building.
Captain Mohamed Hussein said dozens of people, including lawmakers, were thought to have been staying at Mogadishu's Dayah hotel at the time of the morning attack.
Explosion at hotel in Somalia – mass casualties feared
Homegrown Islamic extremist group al-Shabab was behind the attack.
Andalus radio – linked to the group said: "Well-armed mujahideen attacked the hotel and now they are fighting inside."
Last year similar attacks were carried out in the country.
In June, gunmen stormed the Nasa-Hablod hotel, killing at least 14 people, while gunmen killed 15, including two members of parliament, at the Ambassador hotel, a fortnight prior to that.