SANAA, YEMEN—Islamic militants have stormed a hotel serving alcohol in a southern Yemeni city, killing two people and wounding 20 before torching the building.

Nabil Mohammed Youssef, who lives close to the hotel in Aden, says the attack took place early Wednesday.

He says many hotel guests jumped from their rooms on the second and third floor while others made their escape using bed sheets tied together.

A hotel guest says around five masked gunmen stormed the hotel, shooting randomly and then poured fuel on the carpets, setting them on fire. The guest spoke on condition of anonymity fearing militants’ reprisal.

Militants, including Al Qaeda’s branch in Yemen, have taken advantage of the country’s political turmoil to overrun southern regions and step up attacks.

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