Brasilia, Sep 30 (IANS): An armed man holding a hotel employee hostage freed his victim and surrendered himself after a seven-hour standoff with police in Brazil.

The gunman was identified as Jac Souza Dos Santos, 30, a former candidate for councilman and member of Brazil's Progressive Party, Xinhua reported Tuesday.

The hostage's name has not been revealed.

The gunman kidnapped the employee at St. Peter Hotel here Monday morning.

After forcing the hostage to wear a vest lined with sticks of dynamite, Dos Santos led the man onto a 13th floor balcony and ranted a series of demands including the ouster of President Dilma Rousseff.

When police negotiators began talks with him, Dos Santos said his demands had to be met by 6 p.m., but he decided to surrender two hours before the deadline.

The gunman also requested "a Brazilian flag to put around his shoulders at the time of his surrender", a police official said.

The hotel employee was released unharmed and left the building.

Police confirmed that Dos Santos's gun and the sticks of dynamite tied to the hostage's belt were fake.

Dos Santos reportedly registered at the hotel early in the morning, and soon began knocking on room doors on the 13th floor, warning guests to leave the place because he was going to carry out a "terrorist" attack.

Police said Dos Santos, reported to suffer from psychological problems and have attempted suicide recently, would be taken to a specialised police detention centre.