The hostages have been barred from leaving the building by gunmen brandishing AK-47s who have vowed to defend their country against rebels.
Food and water are running out, gunmen are "roaming the corridors" and snipers have been posted on the roof. Electrical power has also died in parts of the hotel.
Those inside include journalists from the BBC and ITN, as well as an Indian member of parliament and the former US congressman Walter Fauntroy.
Speaking after a meeting of the National Security Council, the Foreign Secretary said he was monitoring the situation "hour by hour".
"We're monitoring that closely. We are in touch with their news organisations. We are concerned about their safety," Mr Hague said.
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