An Associated Press reporter at the scene saw police searching through rubble along the wall of the hotel's compound, apparently the impact point.

The area was blocked off by dozens of police and army officers. The sound of wailing ambulance sirens came from many directions.

The rocket wounded two people, Interior Ministry spokesman Zemeri Bashary told The AP. He said he had no reports of deaths and did not say how serious the injuries were.

Janagha Duragat, a shopkeeper who was waiting outside the hotel to load his merchandise into a car, said he saw the rocket strike the wall. He said it appeared to have come from nearby.

Duragat said he saw at least one policeman wounded in the attack.

The heavily guarded Serena regularly houses visiting diplomats, officials and international workers. It has been the target of attacks before, most recently just last month when a rocket slammed into a courtyard. No one was hurt.

The most serious attack occurred in January 2008, when militants stormed the hotel in a coordinated assault that killed seven people.