And the Nasa-Hablod hotel was targeted just past year, when al-Shabaab gunmen stormed the building, killing at least 14 people and injuring another 25.
Witnesses said gunmen are fighting inside.
Bombs in Mogadishu two weeks ago killed at least 358 people, the worst such attacks in the country's history, igniting nationwide outrage.
"A vehicle loaded with explosives went off at the entrance of Nasa Hablod Hotel and there is gunfire", police official Ibrahim Mohamed told AFP, saying there was also "a minibus loaded with explosives which went off a nearby intersection".
According to reports the group also broadcast a statement on its Andalus radio station, claiming: "Mujahedeen fighters are inside Nashablod Two hotel where. apostate officials are staying".
"I think they were al-Shabab fighters who were trying to storm the hotel", he said, lying on a hospital bed.
On Saturday, a suicide vehicle bomb was rammed into a hotel, Nasahablod Two, about 600 metres from the presidential palace, and then armed militants stormed the building, police said.
The US military has increased its strikes against al Shabaab this year with nearly 20 drone missions against the terror group.
Abdikadir Abdirahman, director of Mogadishu's Amin ambulance service, said 17 injured people had been carried away from the hotel blast.
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".
Somalia's government attributed that attack to al Shabaab.
The Shabaab has made attacks on hotels - commonly beginning with a suicide auto bombing followed by an invasion by gunmen - a regular strategy in its decade old battle to overthrow successive internationally-backed governments in Mogadishu.
"Turkey will continue to stand by the Somali people and its government in the fight against terrorism".