Bystander killed in shootout at Brazil hotel

Gunmen engaged in a shootout with police took 30 people hostage today at a luxury Brazilian hotel popular with foreign tourists, but within hours freed the captives and surrendered.

The upscale, beachside neighbourhood where the Intercontinental Hotel is located was transformed into a virtual war zone as the 10 suspects – armed with high-calibre rifles, grenades and pistols – exchanged fire with police in a shootout that killed a bystander as she was getting out of a taxi.