The Corinthia Hotel Tripoli and the area around it, saw a fierce gun battle between Libyan rebels and Gaddafi loyalists this afternoon but there are no reports of any hotel guests or staff having been injured.

Informed sources said that the incident started when a detachment of the rebels moved into action to clear Gaddafi loyalists from the abandoned Mariott hotel, close to the Corinthia. Some of the Gaddafi loyalists escaped into the terrace and garden of the Corinthia, amid heavy shooting.

The hotel staff took immediate protection to protect the guests - including international journalists who yesterday were freed from a hostage situation at the Rixos Hotel. Also in the hotel were workers of several nationalities - including Maltese - who are awaiting evacuation.

"Heavy shooting is going on in central Tripoli just at the doorstep of our hotel. Street battle. Sniper fire. Hotel under gunfire attack," an AFP correspondent reported in a brief email.

"Update as soon as safe. Can't keep filing from rooftop."

An AP correspondent said he had seen a dozen rebels with machine guns and an anti-aircraft gun mounted on a pickup truck outside the hotel entrance. The rebels initially tried to enter the Corinthia but hotel staff dissuaded them.

However, the situation appeared to have calmed down by about 2.35.

At 3 p.m. Simon Denyer of the Washington Post reported that the hotel was back to normal. He said it had actually been two groups of rebels firing at each other and the hotel was hit by bullets.

Libyan rebels last night raided the hotel and conducted a meticulous search after reports that one of Col Gaddafi's sons was hiding there. No one was found. The hotel is located in a rebel-occupied area which has been relatively quiet.

It is a few hundred metres from the centre of Tripoli's Old City, near the harbour.

Luke Harding describes gun attack on Corinthia hotel in Tripoli from matthew weaver on Vimeo.