The exact number of people held is not known as, according to the police, many guests have locked themselves in their rooms.

According to eyewitness reports, gunmen entered the hotel's Kandahar restaurant and opened fire on diners before taking control of the property.

A spokesperson for Oberoi Hotels and Resorts said that the group was not going to make any announcements until the situation was over.

"South Mumbai and our hotel in the city are under the control of the Police and Security forces. We are monitoring the situation closely," he said.

"Despite all efforts we are unable to make contact with the persons inside the hotel and therefore can not offer any further information to that being relayed by the media."

Earlier this morning, Indian special forces stormed the Taj Mahal Palace & Towers Hotel in the city, freeing a number of hostages – many of them foreign visitors – from the luxury hotel.

Parts of the exterior of the Taj Palace has been engulfed in a violent fire and the fire service has entered the building in an effort to bring the blaze under control.

Armed gunmen took control of the two hotels late last night as part of an organised attack on the city that is believed to have resulted in the deaths of around 100 people. A further 300 have been reported as injured.

According to a spokesperson for Taj Hotels & Resorts, which operates the Taj Mahal hotel, staff are working with the police towards securing the safety of the guests.

He also said that rebuilding the hotel, which has been rocked by a number of explosions, will begin as soon as the immediate threat is over.

"We are monitoring the development of the unfortunate situation and all we can say at the moment is that are channeling all our efforts and energy to ensure a speedy normalisation of the situation as best as we can," he said.

"We will rebuild every inch that has been damaged in this attack and bring back the Taj to its full glory."

HOTEL INFORMATION

Oberoi Trident

The Oberoi, Mumbai, is also known as the Oberoi Trident is located in the centre of the city's financial district, and has been rated as one of the best hotels and resorts in the world by the Forbes Traveller 400 guide.

Among the guests to have stayed at the five-star hotel is Bill Gates, the head of computer company, Microsoft, as well as US presidents.

Its facilities include a 24-hour business centre offering high-speed internet technology, tele-conferencing and video-conferencing equipment. The Oberoi also boasts an outdoor swimming pool, a sauna, an Oberoi spa and a fitness centre.

The spa offers a range of holistic, non-clinical therapies and massages incorporating traditional Indian Ayurvedic principles, aromatherapy and Western techniques.

It is operated by the Oberoi group, founded in 1934, which owns or manages 30 sites and luxury cruisers in five countries under the 'Oberoi Hotels & Resorts' and 'Trident' brands.

The Mumbai site is one of eight in India operating under the Trident brand.

Taj Mahal Palace and Tower

The Taj Mahal Palace and Tower in Mumbai was built in 1903 by the founder of the Tata Group, Mr Jamsetji Nusserwanji Tata, and was the first hotel of Taj Hotels, Resorts and Palaces.

Taj Hotels, Resorts and Palaces is currently on of Asia's largest hospitality groups, owning 59 hotels in 41 locations across India, as well as an additional 18 sites in countries including Australia, the Maldives and the UK.

Located in the centre of Mumbai, the five-star hotel offers a total of 565 rooms, including 46 suites, 11 banquet halls and conference facilities. It also boasts a fitness centre with steam and sauna, a shopping arcade and a swimming pool.

The Taj Mahal Palace and Tower's spa facilities offer signature treatments SAMA Balance and Pehlwan Malish warrior massage, Indian aromatherapy massages, body scrubs and wraps, as well as yoga, meditation, beauty treatment and a range of holistic healing therapies.

The fitness centre offers CV, strength and weights training within the spa.

In 1972, the Taj Mahal Palace and Tower was the first site in India to open a 24-hour coffee shop.