Bombs exploded inside two low-budget hotels in Bolivia's capital overnight, killing two people and wounding seven, police said Wednesday. An American was among those arrested.

The explosions occurred Tuesday night and early Wednesday in the historic city center. Police commander Oscar Nina said it was "a case typical of terrorist crime."

Two people — an American and a Uruguayan — were arrested early Wednesday in connection with the bombings, La Paz district attorney Jorge Gutierrez said.

Police planned a news conference later Wednesday to provide more details.

The deaths were caused by the first explosion, Nina said. Police evacuated the second hotel before the blast there.

"The theory we're working on is that both cases are related because bombs were placed inside" the hotels, Nina told reporters.