Northgate Hotel, a facility providing life-support services to foreign military personnel in Afghanistan, was attacked by Taliban militants early on Monday morning.
"Numerous" gunmen stormed the gate of the hotel after a truck bombing struck the entry gate, said Zabihullah Mujahid, a spokesman for Taliban militants.
Four attackers were fighting their way into the property, according to Tolo News, a leading local news agency.
What the Taliban described as a mini-truck loaded with explosives struck gate of the compound, killing and wounding "numerous foreign invaders."
The attack is still going on, with attackers inside the grounds of the compound, the Taliban spokesman says.
Mujahid said the militant group targeted the hotel because it was a place of "debauchery and obscenity for foreign invaders."
General Charles Cleveland, spokesman for NATO forces in Afghanistan, acknowledged a security incident, telling dpa: "We cannot confirm details of the attack at the moment."
There are no details of casualties at the moment.
Camp Baron, a foreign contractors base near the Kabul airport, was attacked in January this year leaving at least 30 civilians wounded.
Northgate Hotel was also attacked in July of 2013.