Police say a homemade bomb exploded near a hotel in a southern Philippine city, killing two people and wounding two officers.

Cagayan de Oro City police chief Gerardo Rosales says no motive or suspects have been identified in the blast Thursday morning (local time).

One bystander was killed on the spot and another died in the hospital. No guest or hotel staff was hurt.

Rosales says two officers who responded to a call that several unidentified men were acting suspiciously saw a small metal container near the hotel and called a bomb squad.

The officers were wounded when the device, which was packed with nails, exploded as they backed away from it.

Criminal gangs as well as Muslim and communist rebels operate in the restive southern region.