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The group’s fighters armed with rocket-propelled grenades (RPGs) and machine-guns clashed with guards at the hotel after the ambush attack, a witness said.
He says the security forces had repulsed the attack launched by Al-Shabaab, adding that heavy bursts of weaponries could be heard near the hotel, he said.
The attack was immediately claimed by Al Qaeda linked Al Shabaab group.The group says it has killed several soldiers in the assault.
"We have targeted Somali and African Union officials, who were at the hotel”, the group said.
It is unclear the exact figure of casualty of the attack.
Somali military officials were unavailable to reach on the phone for comments on the latest raid in Barawe town.
The attack comes days after African Union peacekeeping forces’ army chief visited to army camps in the town, urging all troops to launch joint military offensive against Al Shabaab.
The Al-Shabab has been waging an insurgency in Somalia for more than 10 years.
A 22,000-strong African Union force is in the country to help the government fight the al-Qaeda-linked militants.
The group has been driven out of many urban areas since 2011, however, it still controls territory in rural areas and carries out gun attacks and bombings on military and civilian targets.
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Somalia: Al-Shabaab attacks hotel in Barawe
Somalia: Al-Shabaab attacks hotel in Barawe