Armed group Alshabaab militants have entered Nasa Hablod hotel in Mogadishu.
Heavy car bomb was used to ram the gate of the hotel situated at kilometer four area in the capital before militants entered the hotel premises.
Sporadic gunfire is ongoing now.
Somali Special Forces have been called and sources said they already found their way inside the hotel and engaging the attackers.
The number of casualties is still unclear as the details are sketchy.
Another attack on ambassador hotel in the same area earlier this month led to scores of death including two members of parliament.
The group has vowed to intensify attacks against the government during the holy month of Ramadan.