STOCKHOLM, Sweden (AP) _ Fire raced through a small hotel in the western Sweden town of Kvaenum following an explosion early today, injuring at least two people, the Swedish news agency TT reported.

The fire broke out about 4 a.m. local time and the building was completely ablaze within minutes, the report said. Kvaenum is south of Lidkopeing, about 180 miles west of Stockholm.

Two people were taken from the burning building and it was possible that one other person was in the building at the time of the fire, Birger Engstroem, deputy fire chief in Lidkopeing, was quoted as saying.

The small hotel, which was under renovation, has a restaurant on the ground floor and an apartment above, TT said.

On Oct. 29, 63 young people died when a fire broke out in a crowded upstairs dance hall in Goteborg, Sweden's second-largest city.