Gunfire tapered off several minutes after the blast was heard, the Reuters witness said. The police source, who asked not to be identified, had initially said a gunfight was still going on.
The police source said a wedding party was underway when the attack happened in or near the Intercontinental Hotel, one of two major hotels in the western part of Kabul often frequented by foreigners.
There were no immediate reports of casualties. The hotel is built on a hillside in Kabul’s west with heavy fortifications all round and is often used for conferences and by Western officials visiting the city.
Taliban spokesman Zabihullah Mujahid said several fighters from the Islamist group had attacked the hotel, where Afghan and Western officials were supposedly holding security talks.