The beachside Intercontinental hotel in Rio de Janeiro became the setting for a three-hour siege on Saturday as gunmen took hostages and engaged in a shoot out with local police. The violence erupted after around 60 members of a drug gang tried to return to Rocina, one of the city’s largest slums. They had apparently been attending an all night celebration in Vidigal, a nearby favela.

Eight vehicles were intercepted by police as they tried to get to Rocina, the headquarters of the gang. Although some managed to flee, at least 10 decided to hold up in the hotel. Around 40 minutes of gunfire ensued.

One hotel guest, 48-year-old British businessman Paul Ayscough, said he thought over 1,000 shots had been fired in all. He added that automatic weapons were being used as well as other firearms, such as pistols. The gun fight resulted in the death of one woman, the injury of four police officers and the arrest of 10 people.

Luiz Eduardo Soares, a sociologist who lives nearby, said the walls of his house started to shake as the gun battle commenced. He added that it was as if the gun men were firing their weapons from inside his house. On his Twitter page, Soares said he thought he was in Afghanistan, not Brazil.

Sergio Cabrall, Rio’s governor, said the authorities were under no illusion about how difficult it was going to be to fight against the drug gangs, but added that he believed they were moving in the right direction. Rio is due to host the Olympic Games in 2016.