Baghdad hotel blast kills at least 27 people
Americans, Britons, Egyptians as well as other foreigners were staying at the hotel, one resident was quoted as saying.
Flames shot skyward, and heavy smoke rose behind a central square from the area of the blast. Dozens of US soldiers in Humvees and Bradley fighting vehicles arrived and started to clear crowds.
The area of the blast, Karrada, is a mix of residential and commercial buildings.
Meanwhile, the Bush administration offered prayers for the victims but said such attacks would not change US policy.
"Democracy is taking root in Iraq and there is no turning back," said Scott McClellan, White House spokesman. "This is a time of testing, but the terrorists will not prevail."
