Taliban militants have attacked a popular lakeside hotel on the outskirts of Kabul and seized a number of civilian hostages, including women and children.

The attack set off an hours-long gunbattle with Afghan security forces.

Police say there are some deaths as they try to look for a way to storm the hotel without causing any more civilian casualties.

Police say the Taliban insurgents armed with rocket-propelled grenades and Kalashnikov rifles, attacked the hotel on the shores of Qargha Lake Thursday night, where guests and families had gathered for a party. The hotel is popular with wealthy Afghans, businessmen, and foreigners.

The attack came hours after Afghan President Hamid Karzai told Parliament that insurgent attacks against Afghan police and soldiers are increasing as foreign combat troops prepare to pull out of the country.