Police in Brazil are questioning 10 men accused of taking 35 people hostage inside Intercontinental hotel in the city of Rio de Janeiro.

The armed men had first become embroiled in an exchange of fire with police outside a large slum near the upscale Sao Conrado neighbourhood on Saturday, before escaping to the hotel.

Dozens of special forces police rushed to the scene and were able to free the hostages and arrest the hostage takers.

In recent years police in Rio have been occupying slums and setting up permanent posts inside as a way to bring down violence levels.

The occupations were controversial at first, but have seemed to reduce violence, a part of a long-term efforts to deal with high crime in advance of the 2014 World Cup and 2016 Olympics.