At least 25 people were killed and 30 others injured in a suicide attack outside a popular hotel in Somalias capital city of Mogadishu, police said.

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.