Following the blasts yesterday, witnesses reported hearing gunfire at the Nasa Hablod Hotel 2 which was sealed off by security forces with gunmen believed to be inside.
"About 14 people, most of them civilians, were confirmed dead so far and the security forces are still working to ensure the area is clear," said security official Mohamed Moalim Adan.
He said "sporadic gunfire" was continuing with at least two gunmen from the Shabaab Islamist group believed to be inside the hotel. One senior police official and a former MP were among the dead.
The Al-Qaeda-affiliated Shabaab claimed yesterday's bombing and hotel assault in a statement on its Andalus radio station.
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"The Mujahedeen fighters are inside Nasa Hablod 2 hotel where... apostate officials are staying," said the brief statement.
Mogadishu's Aamin ambulance service removed bodies from the scene and evacuated 17 wounded, its director Abdukadir Abdurahman said.
Police official Ibrahim Mohamed said the attack started when a car bomb went off at the entrance to the hotel while "a minibus loaded with explosives" was detonated at a nearby intersection.
"We can hear the gunfire but it is difficult to know who is fighting, the forces cordoned off the building and no one can go close to it," said Abdulahi Nure.
Fellow witness Ismail Muktar said, "We can hear sporadic gunfire and grenade blasts and the area is very dark because the electric line was cut off amid the blast."
"Most people fled the hotel through a back door but some are still trapped inside," said Mohamed Dek, who was escaped the hotel after the initial explosion.
"I was very lucky," he added.
The Shabaab has made attacks on hotels -- commonly beginning with a suicide car bombing followed by an invasion by gunmen -- a regular strategy in its decade old battle to overthrow successive internationally-backed governments in Mogadishu.
The Shabaab lost their foothold in Mogadishu in 2011 but have continued their fight, launching regular attacks on military, government and civilian targets in the capital and elsewhere.
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