SHANGHAI - Two people died after an accident during the demolition of a multi-story building in Shanghai Friday afternoon, the local government said.   

A third person is in hospital receiving treatment.     

The accident occurred when a multi-story building in Jiading district was being demolished and fell onto a neighboring hotel, trapping an unknown number of people.     

A Xinhua reporter at the scene said the number of casualties was likely to rise.     

Police and firefighters are currently undertaking rescue operations.