Gunmen attacked the Park Palace guest house, where a party was being hosted with many foreigners in attendance, and then Afghan security forces stormed the hotel.
Five people were killed and five were injured, including foreign nationals, Kabul Police Chief Gen. Abdul Rahman Rahimi told reporters. He added that police rescued 54 people from inside the hotel.
The Taliban, through its spokesman Zabiullah Mujahid, claimed responsibility for the attack and confirmed that one attacker was involved.
Unlike past attacks in which assailants breached security, Rahimi said, the initial investigation suggested the attacker in this case was inside the hotel among the guests. The firing started from inside the hotel when the party started, he said, adding that he could initially confirm one attacker was resisting authorities and killed.
“We have seen reports of other nationalities killed, as well, but cannot confirm them," the official added. "Our thoughts are with the families of the victims at this time.
“Our U.S. embassy in Kabul is in close contact with the Afghan authorities and is working to obtain more information," the official said.
Gen. Farid Afzali of the Kabul Police told ABC News separately that an injured American woman had been rescued from the Park Palace Hotel when police stormed the facility.
Details about the attack remained sketchy.
The Associated Press contributed to this report.