The attack took place on Saturday night outside the Nasahablod 2 Hotel ahead of a high-level ministerial meeting slated to begin from Sunday, reports Xinhua news agency.
According to the police, 30 people, including a government minister, were rescued from the hotel as gunfire continued between extremists and security forces.
A second explosion also went off shortly after the first in the same location.
According to witnesses, the explosion went off just when a truck tried to tow a small vehicle from the scene as rescue teams were trying to gain access into the hotel.
The Al-Shabab terror group claimed responsibility for the attack.
Saturday's incident comes just two weeks after more than 350 people were killed in a truck bombing on a busy Mogadishu street, the worst single explosion in the history of the Somalian capital.
The government holds Al-Shabab responsible for it.
(This story has not been edited by Social News XYZ staff and is auto-generated from a syndicated feed.)
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