Two militants linked with an Egyptian affiliate of the Islamic State Sunni jihadist group attacked a hotel in El-Arish, the capital of the North Sinai province.

The terror attack, which involved a car bombing and shooting, targeted the Swiss Inn Hotel, where judges overseeing the ongoing parliamentary election were staying.

Seven people, including two judges, four policemen and a civilian, were killed in attack, interior ministry spokesman Khaled Megahed told AFP.

"The security forces tasked with protecting the hotel tried to prevent a car bomb from reaching the hotel and deal with its riders, which led them to blow it up outside the security cordon in front of the hotel," a statement from Egyptian interior ministry said Tuesday, according to Xinhua.

"Two judges, three police officers, five police recruits and two civilians were wounded and taken to hospital for treatment," it added.

"This brutal incident is a failed, desperate attempt to hinder the state. We emphasise that [this incident] will strengthen the persistence and determination of police and the armed forces to root out terrorism in North Sinai," a military spokesman said in a statement, according to Ahram.

Islamic State's Sinai-based affiliate, Ansar Beit Al-Maqdis ( also known as 'State of Sinai') has immediately claimed the responsibility for the attack.

The regional jihadist outfit, in a statement posted on social media accounts of its followers, claimed that the attack was carried out by two militants and identified them as Abu Hamza al-Muhajer and Abu Wadhaa al-Muhajer, the Associated Press reported.

"A brother ... seeking martyrdom hit with his car bomb the security force protecting the Swiss (Inn) hotel where 50 judges were staying, only to be followed by a lion ... who broke into the judges' base with his automatic weapon ... then blew up his explosive belt among them," the statement said, according to Reuters.