Al shabaab militants attacked hotel Muna, near the Presidential palace, in the Somali capital â€“popular with MPâ€™s and government ministers.
The assault lasted almost half an hour, with fighters wearing military uniform opening fire inside the hotel and later staging suicide bombing.
At least 33 people have been killed, including six MPâ€™s. More than 50 people were wounded.
Later, Al Shabab spokesman Ali Dhere, claimed the attack via teleconference, saying forces loyal to Al Shabab carried out the attack on the hotel used by the Somali MPâ€™s.
â€œâ€¦our commando forces carried out an attack on a hotel popular with so called MPâ€™s, many of them have been killedâ€¦.â€said Ali Dhere, Al Shabaab Spokeman.
â€œâ€¦there were three men wearing the new Somali military uniform, they first started to open fire and then there was a big explosionâ€¦â€ says one of the eyewitnesses.
â€œâ€¦ it is a massacre the blood is everywhere, some MPâ€™s were killed, at the moment I canâ€™t tell you by names, but MPâ€™s were killedâ€¦â€ MP Saleban Mohamed Ibrahim told Horseed Media.
Saynab Qayad the head of Human rights commision of the Somali Parlaiment, one of the rescued MPâ€™s, told Horseed Media, that she saw 6 dead MPâ€™s.
Earlier, Somali security forces said that they seized one gunman alive. Two of the attackersÂ blew themselves up inside the hotel.
The attack comes as more heavy clashes are reported in different districts of the Somali capital, today.
Heavy fighting between the Somali government forces and insurgent group Al Shabaab resumed early on Tuesday morning, more than 20 people were killed in the fighting, on Monday.
According to medical officials in the Somali capital,Â more than 100 people were wounded in the latest clashes, most of them civilians.
Today, most of the fighting is taking place in the central district of Wardhigley and Hawlwadaag.
The fighting began on Monday, after the spokesman of Al Shabaab, announced that his group was launching full scale attack on the government and the African union peacekeepers AMISOM positions in Mogadishu.
The government accused the islamist militants of killing dozens of civilians in yesterdayâ€™s shelling.
This is the heaviest fighting in the city, since the holy month of Ramadan began, it also coincides with as more AMISOM troops are scheduled to arrive in the Somali capital.