According to the ISPR, the bodies of terrorists were held for identification. One of the wounded remains in a critical condition, while the other five were "out of danger".
The attack comes just weeks after gunmen killed 14 people, including 11 military personnel, in the region.
Four terrorists stormed the Pearl Continental Hotel in the city of Gwadar, which is popular with tourists and business people before engaging in an armed stand-off with the military.
ISPR said that the terrorists were restricted to the fourth floor corridor after Quick Response Forces of the army, navy and police reached the hotel and started an operation. A navy soldier was also killed, with two army captains and two Pakistani navy soldiers injured. He said all the people present inside the hotel have been evacuated safely.
A separatist group known as the Baluchistan Liberation Army (BLA) claimed responsibility for plotting the attack on the heavily guarded hotel, which is located on a hilltop overlooking the deep-water Arabian Sea port.
The Pakistani prime minister has condemned a deadly assault by insurgents in a luxury hotel in southwestern Pakistan, saying the attack was part of an effort to "sabotage" the country's economic development.
Gwadar port is one of the focal points of the Dollars 50 billion China-Pakistan Economic Corridor (CPEC) with many Chinese workers from other provinces of Pakistan working at the port.
Balochistan, home to a long-running insurgency, is Pakistan's poorest and least developed province.
Recent days have seen an uptick in violence in the province, with ethnic Baloch separatist groups ramping up attacks against security forces and civilians.
"At around 4:50 pm (local time) we got reports that there are three to four armed men in PC Hotel", the officer said.
The BLA is one of the most-organised terrorist group of Baloch nationalists fighting against security forces. "This actually denied terrorists of possible live updates and thus facilitated the security forces in smooth execution of the operation", the statement concluded.
The BLA has targeted Chinese workers in Pakistan multiple times, including a brazen daylight attack on the Chinese consulate in Karachi which killed four people in November past year. Beijing is now the most important economic and political ally of Pakistan.