The drones' targets were not immediately clear.

"Two drones were downed over Erbil," with debris falling near a major five-star hotel, and some crashing into a hall used for important government events in an upscale neighbourhood frequented by foreigners, the security source told AFP.

He added that the US-led international coalition forces, which are deployed at a base in Erbil airport, intercepted the drones, with no casualties reported.

AFP journalists also reported hearing loud bangs near Erbil airport from air defences engaging drones.

Since the start of the Middle East war, the coalition's air defences have repeatedly downed drones over Erbil, the capital of the autonomous Kurdistan region, which is also home to a major US consulate complex.

The United States have warned again Wednesday that Iranian-backed Iraqi armed groups have targeted hotels frequented by Americans in Iraq, including in Kurdistan.

Elsewhere in Kurdistan, two drones were downed in the district of Harir northeast of Erbil, local official Sherwan Jalal told AFP.

The district is home to a military base which Iran had previously targeted. It remains unclear if the base still hosts US troops.