"We condemn this terror attack that left at least 10 people dead and several others wounded -- according to initial reports -- as it targeted civilians during the Muslim holy month of Ramadan," it said.
Witnesses said at first an explosion was caused by a suicide car bomber at the entrance of a hotel, which led to an exchange of gunfire between security guards and the assailants who tried to infiltrate the hotel.
According to a source at the hotel, who requested anonymity, "two successive explosions took place inside the establishment and the attack left several dead and wounded."
The al-Shabaab militant group has claimed responsibility for the attack.
A medical source, who also spoke on condition of anonymity, said that rescue teams had managed to carry seven injured out of the explosion site.
Somali special forces were immediately dispatched to the scene of the attack to evacuate the hotel that is mostly frequented by government officials.