"First we targeted [the hotel] with a suicide vehicle bomb and then armed "mujahideen" [guerrilla fighters] stormed the hotel".
Global Affairs Canada has not confirmed the deaths but says it is aware of a bombing in Somalia and is working to get more information.
"The whole building is in ruins, there are dead bodies and wounded who have been recovered from inside. They can not claim to be fighting to bring good governance to the country", he said in a statement issued in Mogadishu.
Abdiasis Abu Musab, al-Shabaab's military operation spokesman, said the group was behind the attack and that fighting was still going on.
A Briton was among 26 people killed by terrorists in an overnight siege of a hotel in Somalia.
Officers have confirmed to CBC that the attack is now over and that many people have been rescued from the area where it first occurred.
Somali women carry weapons during a demonstration organized by the extremist group al-Shabab in the Suqa Holaha neighborhood of Mogadishu on July 5, 2010. These are the prominent people.
They added that the death toll could be high.
Two journalists and a United Nations agency worker have also been confirmed among the dead. Naleyeh was the mother of two boys.
There are mostly civilians, including journalists and a candidate in the race to become the provincial governor, among those killed, according to the reports.
"I admired her so much for her work, and I'm still proud of her for giving back to the Somali community", she said.
"I am so sad and shocked to learn of the tragic death of @HodanTV and her husband Farid in a terrorist attack, along with other victims of this hate-fuelled violence", Horwath said on Twitter.
State-run Somali National News Agency said in a statement Prime Minister Hassan Ali Khaire had condemned the attack. "We are restful combating all throughout the hotel", he mentioned.
Kismayo resident Osman Nur told Reuters the explosion destroyed parts of the hotel and nearby businesses and security forces were deployed across the city.
Somali Journalsits Syndicate (SJS) condemns the barbaric attack targeting journalists and other members of the public in the hotel.
In 2011, they fled positions they once held in Mogadishu, and have since lost many strongholds. The city's port had been a major source of revenue for the Islamists from taxes, charcoal exports and levies on arms and other illegal imports.