An official told Agence France-Presse (AFP) that four attackers are "inside the building" and "shooting at guests".
The attackers have also set fire to parts of the hotel.
A spokesperson for the country's interior ministry says the group, who've targeted the site in Kabul, appear to have included suicide bombers.
Danish said the special units of the Afghan National Police (ANP) have launched clean-up operation at the hotel.
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Gunmen exchanged fire with security forces at the Intercontinental Hotel in Kabul, Afghanistan, on Saturday, Jan. 20.
In 2011, at least 12 people were killed after nine Taliban militants attacked the same hotel.
Sources claimed that the hotel witnessed heavy gunfire. There were no immediate details of casualties.
"They probably used a back door in the kitchen to enter", he said.
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An AFP reporter who attended the conference passed through two vehicle security checkpoints.
Afghanistan's Interior Ministry spokesman has confirmed to TOLOnews that Intercontinental Hotel in the capital has been attacked on Saturday. In the end, all seven, along with 11 other people, were dead. The Islamic State group has claimed most of the recent attacks in the Afghan capital, but authorities suspect that the Taliban-affiliated Haqqani Network has been involved in some of the assaults.
No-one has claimed responsibility for the attack.
The attack comes just days after the United States embassy in Kabul issued a warning about hotels in the city, saying it was aware of planned attacks by extremist groups.
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