The assault took place at 12:40 pm (local time) when the terrorists entered the hotel in Qala-e-Naw, the capital of r, and fought against the security forces, TOLOnews quoted Afghanistan's interior ministry spokesperson Nusrat Rahimi as saying.
Following the attack, there was a continuous exchange of fire between the terrorists and police personnel.
The siege came to an end after seven hours and three terrorists were killed while two others were arrested, according to Rahimi.
He said that eight security personnel died and seven others were injured in the attack, warning that casualties may rise.
"Police cordoned off the area when the fighting was on," Rahimi said.
He added that a number of civilians have also been affected in the attack.
The Taliban has also claimed that they carried out an attack at the police headquarters in Badghis province.
The latest attack by the Taliban comes after peace talks were held between the group and representatives of the Afghan government in Qatar's Doha city on Monday.
The meeting, jointly organised by Qatar and Germany, is seen as an icebreaker that could eventually lead to a peace settlement in the country engulfed in war for the past 18 years.