The suspects, Saw Myint Lwin, Aung Moe and Aung San Lin, were detained Tuesday and confessed later in the day, Eleven Myanmar reported.
The men said they were offered money to commit the bombings.
The bomb at Traders Hotel detonated at 11:30 p.m. Monday, injuring an American woman. The bomb at Ruby Restaurant was found before it detonated. Police said their investigation is ongoing.
Several bombs have exploded in the Yangon in the past week.
One person was killed and six were wounded when two bombs exploded in Yangon Thursday morning. The bombs exploded between 7 a.m. and 8 a.m. near a pagoda, the Thai newspaper The Irrawaddy reported.
A bomb that detonated Friday killed two people and an explosive device injured two teens Sunday.
The U.S. and Australian embassies have issued security alerts to those traveling inside Myanmar.