Israeli anti-terror personnels stand outside of Leonardo Club Hotel after a deadly shooting in Eilat, South Israel, on Oct. 5, 2012. Anti-terror personnel shot and killed an American citizen Friday morning after he shot dead a hotel employee in the southern Israeli resort town of Eilat. (Xinhua/JINI)

Anti-terror personnel shot and killed an American man Friday morning after he shot dead a hotel employee in the southern Israeli resort town of Eilat.

The gunman, over 20-year-old, was a former worker at the Israeli Leonardo Hotel, according to police.

Israeli media reported earlier that the individual had an argument with the victim, and then grabbed a gun from a female security guard, shooting him to death.

"We are investigating if the shooting was work-related," police spokesman Mickey Rosenfeld told Xinhua.

The gunman then barricaded himself in the kitchen and fired at police negotiators, until the Lotar anti-terror squad stormed in, killing him, police said.

Several hotel guests were taken to hospital, suffering from shock, the report said.

Guests were told to stay in their rooms during the incident, according to the Ynet news site, as police and security forces were surrounding the hotel.

The gunman was in Israel as part of the Ra'aninim international student exchange program, according to Israel Radio.