Radford said the hotel was fairly crowded at the time, with about 60 patrons watching UFC boxing.
Among the crowd were at least one doctor and nurse, who rushed out to give medical care to the victims.
The hotel has been closed for the night, and Wigram Road remains blocked to traffic.
A local, Charlotte, said she ran out to the street and saw one of the men shot about six times, including in the neck, chest, abdomen, arms and legs.
“He had been shot multiple times, at least six times,” she said. “But he was still conscious, and they put him in the ambulance so hopefully he makes a full recovery.
“It just doesn’t feel like something that happens in Sydney very often, but when it does happen it feels pretty scary.”
Police have established a crime scene, and Leichhardt detectives, with assistance from State Crime Command’s Homicide Squad, have opened an investigation into the incident.
The police operation is ongoing.
Another woman, who asked not be identified, said she was dropping her sister-in-law off at the hotel when the shots were fired.
“She had one foot out the door, and then we heard the shots, about 12 shots,” the woman said.
She said she initially thought the shots were fireworks. Shortly after, she saw two women crouching for cover behind a bar.
The woman said a male dressed in all black ran from the hotel immediately after the shooting.
“He was running very fast,” she said. “He looked like he was scared.”
More to come.