The Ministry of Interior spokesman Najib Danish confirmed that the ministry has received reports regarding the death of five people so far while six others have been wounded during the attack.
He said two of the attackers have been shot dead by the security forces and the clearance operations are underway to eliminate the remaining militants.
The eyewitnesses in the area earlier said that a section of the hotel has also caught fire and there are fears that some people have also been killed or wounded in the attack.
No individual or group has so far claimed responsibility behind the attack which takes place almost six years after a group of insurgents launched a similar attack on the same.
More than ten people were killed in a similar attack on Intercontinental Hotel in 2011.