Somali security forces have ended a deadly 24-hour siege by Islamist fighters who stormed a popular hotel in the central city of Beledweyne, authorities said.

The attack by al-Shabab began with a car bomb exploding, followed by gunmen entering the hotel, leading to intense clashes with security forces.

"The attackers have been neutralised. Some detonated themselves while others were killed by police forces," Omar Osman Calasow, the mayor of Beledweyne district, told the BBC.

The mayor said seven people had been killed in the attack but witnesses said the death toll could be higher.

The raid at the Qahira Hotel took place as politicians, security officials and traditional elders were meeting to discuss plans for an offensive against al-Shabab in central Somalia.

Police officer Ali Mahad told AFP news agency that most of those in attendance had been rescued.

A federal lawmaker from Beledweyne, Dahir Amin Jesow, told the BBC that about seven gunmen had attacked the hotel.

It is unclear how many people have been wounded, but the lawmaker said they were trying to organise planes to fly victims to Mogadishu for treatment.

Parts of the hotel were reduced to rubble as government forces and gunmen exchanged fire, shopkeeper Ali Suleiman, who witnessed the attack, told the Reuters news agency.

"We first heard a huge blast followed by gunfire, then another blast was heard," he said.

Calasow said the 24-hour siege ended on Wednesday morning, leaving "significant damage".

"Among those killed in the attack were military officers, traditional elders, and soldiers," Calasow added.

Al-Shabab said it had killed 20 people, including government officials and leaders of a pro-government clan militia.

The federal government said it was still investigating and has not commented on the reported killing of the officials.

In a statement, Ali Abdullahi Hussein, the president of Hirshabelle state, praised the security forces for their bravery in neutralising the extremist militants.

"Let us unite to complete the elimination of these brutal extremists," Hussein added.

Beledweyne is about 335km (208 miles) north of the capital, Mogadishu, and is a strategic location in the campaign against al-Shabab.

The Somali forces, alongside African Union peacekeepers, continue to wage a campaign against the militants, which remain a big threat despite the ongoing military operations.