Desperate guests fearing for their lives begged authorities to reach them before the attackers, as Afghan security forces lay siege to the hotel.
A guest at the hotel told AFP that people were hiding in their rooms.
"I don't know if the attackers are inside the hotel but I can hear gunfire from somewhere near the first floor," the guest said.
"We are hiding in our rooms. I beg the security forces to rescue us as soon as possible before they reach and kill us."
A group of three or four gunmen attacked the hotel on Saturday and were exchanging fire with security forces, an interior ministry spokesman said.
One eyewitness told Wall Street Journal's Ehsanullah Amiri that he had seen four dead bodies on the floor outside the hotel after attackers threw victims from the windows.
It is still unclear if the attack resulted in any casualties but local media are reporting as many as 15 dead and 35 injured (Image: REX/Shutterstock)
Security forces have killed two of the attackers (Image: REUTERS)
Fears are growing for the staff and guests taken hostage as the siege escalates (Image: REUTERS)
Security forces have killed two of the attackers (Image: REUTERS)Fears are growing for the staff and guests taken hostage as the siege escalates (Image: REUTERS)Local media are reporting as many as 35 casualties and that 15 people were feared dead in the attack which began around 9.20pm local time.
Helicopters are circling above the hotel - which is a favourite with foreign reporters, diplomats and those in the city for business.
Special forces have killed two of the attackers, interior ministry spokesman Nasrat Rahimi said in a statement.
They had cleared the first floor of the hotel but the attackers were still on the floors above.
Footage from Afghan television stations shows the top floor of the hotel on fireThe attackers are believed to have broken into the hotel via the kitchen before storming a meeting of Afghan civil servants being held in a conference suite and "completely burned the room down".
Local journalist Bilal Sarwary told Sky News: "Some local TV stations are reporting that two loud explosions were heard."
He described it as a "complex attack" and added: "Eyewitnesses have said they managed to escape and there were a number of casualties and fatalities on several of the floors."
Al Jazeera are reporting that a number of people are being held hostage inside the hotel.
Hotel manager Ahmad Haris Nayab, who managed to escaped unhurt, said the attackers had managed to get inside and people were fleeing amid bursts of gunfire on all sides.
The hotel, located on a hilltop and heavily protected like most public buildings in the city, was previously attacked by Taliban fighters in 2011
The hotel has long been a favourite with foreign journalists and diplomats - making it a prominent target for terrorists (Image: Getty)
There is no immediate claim of responsibility from a terrorist group.
The Afghan government's Crisis Response Unit have begun a firefight to take back control of the hotel, a spokesperson for the Interior Ministry confirmed.
Firefights were ongoing on the hotel's third and fourth floors, another interior ministry spokesman said.
The attackers had set the hotel kitchen on fire, the spokesman added.
Meanwhile the hotel's fourth floor was also ablaze, an official with the National Directorate of Security (NDS) told AFP.
Some reports said the hotel had been hosting an IT conference attended by provincial officials at the time of the attack.
The country's 1TVNews station described the gunmen as "suicide attackers" who were "said to be firing from top of hotel".
Hayat Amanat, a journalist with TOLOnews, quoted an eyewitness saying at least 15 were left dead and injured on the first and second storeys.
Najib Danish, a spokesman for Afghanistan's interior ministry, said special forces have arrived at the scene and are battling the attackers.
Details of the attack, including information on any casualties, were unclear but the attackers appeared to have included suicide bombers, ministry spokesman Najib Danish said.
A spokesman for the Foreign and Commonwealth Office told Mirror Online that they were "monitoring the situation closely and are in touch with local authorities".
Last week US authorities warned that the hotel may be targeted by terrorists
Special Forces are understood to have begun the process of retaking the building
The incident came days after US Embassy in Kabul issued a warning that said armed groups may be planning attacks against hotels in the city.
The hotel previously came under attack in 2011 when Taliban suicide bombers launched a four-hour siege that left 21 dead, including all nine attackers.
The hotel, which has 200 rooms and four restaurants, was one of Afghanistan's first luxury hotels when it opened in 1969.
We'll be bringing you the very latest updates, pictures and video on this breaking news story.
The hotel has long been a favourite with foreign journalists and diplomats - making it a prominent target for terrorists (Image: Getty)There is no immediate claim of responsibility from a terrorist group.
The Afghan government's Crisis Response Unit have begun a firefight to take back control of the hotel, a spokesperson for the Interior Ministry confirmed.
Firefights were ongoing on the hotel's third and fourth floors, another interior ministry spokesman said.
The attackers had set the hotel kitchen on fire, the spokesman added.
Meanwhile the hotel's fourth floor was also ablaze, an official with the National Directorate of Security (NDS) told AFP.
Security Alert for #Kabul, #Afghanistan: reports that extremist groups may be planning an attack against hotels in Kabul, such as the Hotel Baron near Hamid Karzai Int'l Airport. Review suggested actions in attached image. For more information, visit: ow.ly/2BEr30hRn8Z
The country's 1TVNews station described the gunmen as "suicide attackers" who were "said to be firing from top of hotel".
Hayat Amanat, a journalist with TOLOnews, quoted an eyewitness saying at least 15 were left dead and injured on the first and second storeys.
Najib Danish, a spokesman for Afghanistan's interior ministry, said special forces have arrived at the scene and are battling the attackers.
Details of the attack, including information on any casualties, were unclear but the attackers appeared to have included suicide bombers, ministry spokesman Najib Danish said.
A spokesman for the Foreign and Commonwealth Office told Mirror Online that they were "monitoring the situation closely and are in touch with local authorities".
Last week US authorities warned that the hotel may be targeted by terroristsSpecial Forces are understood to have begun the process of retaking the buildingThe incident came days after US Embassy in Kabul issued a warning that said armed groups may be planning attacks against hotels in the city.
The hotel previously came under attack in 2011 when Taliban suicide bombers launched a four-hour siege that left 21 dead, including all nine attackers.
The hotel, which has 200 rooms and four restaurants, was one of Afghanistan's first luxury hotels when it opened in 1969.
We'll be bringing you the very latest updates, pictures and video on this breaking news story.