An American citizen and two Indian nationals are among at least five people killed during a siege at a hotel in the Afghan capital of Kabul on Wednesday evening.

Afghan special forces surrounded the building in the upmarket area of Shar-e-naw after three extremist gunmen stormed a party held for foreigners and held dozens hostage for several hours.

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According to a report by Al Jazeera, the guesthouse is located close to a UN office and a diplomatic compound.

A volley of gunfire was heard inside the hotel as special forces killed the three gunmen and rescued more than 30 people being held hostage at the Park Palace guest house.

A spokeswoman for the US embassy confirmed an American citizen was killed in the attack while another American was among three injured.

Two Indian nationals were also killed and three others who had lived at the hotel were sheltering at the Indian embassy, a diplomat told Al Jazeera.

No group has claimed responsibility for the attack but Taliban fighters launched their most recent offensive against targets in Afghanistan last month, striking government and foreign targets.

Policemen in #Kabul where gunmen have entered hotel used by foreigners. All quiet but Afghan spec forces here pic.twitter.com/fcQkZPa8OT

— Jennifer Glasse (@JenniferGlasse) May 13, 2015

Several rounds of gunfire in last few minutes as #Afgjhan forces try to rout gunmen fm #Kabul hotel. 1 injured pic.twitter.com/fCTryNiiTb

— Jennifer Glasse (@JenniferGlasse) May 13, 2015

Ambulances arrive on scene of attack in #Kabul. After gunfire heard from siege hotel pic.twitter.com/sA4yCzV8a9

— Jennifer Glasse (@JenniferGlasse) May 13, 2015