Mogadishu: At least 12 people were killed in an attack by Islamic militants who stormed a hotel in Somalia's capital late Friday, police and eyewitnesses said. The attack has been carried out in Somalia on the lines of Mumbai terror attack. Terrorists have captured Hotel Hyatt in the capital Mogadishu. The sound of firing can be heard from the hotel.

Reuters news agency reported that unidentified armed assailants attacked inside the hotel and then detonated two car bombs and then opened fire. The al-Qaeda-linked al-Shabaab group has claimed responsibility for the attack.

Several other people were injured and security forces rescued many others, including children, from the scene of the attack.

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

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

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.

"We were having tea near the hotel lobby when we heard the first blast followed by gunfire. I immediately rushed toward hotel rooms on the ground floor, and I locked," eyewitness Abdullahi Hussein told the AP by phone. “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."

The group controls much of southern and central Somalia but has been able to extend its influence into areas controlled by the government based in Mogadishu.

In recent weeks fighters affiliated with the group have also attacked targets along the Somalia-Ethiopia border, which has raised concerns about a possible new strategy by al-Shabab.

The attack on Friday marks the first in the capital by the group since Somalia's new president, Hassan Sheikh Mohamud, was elected in May.