At least four people are known to have been killed by the powerful 7.1-magnitude earthquake that struck early morning off the coast of Honduras.

The earthquake struck at 2:24 a.m. local time Thursday, with its epicentre about 130 kilometres northeast of La Ceiba, Honduras.

The earthquake collapsed shacks in Honduras and Belize. It also prompted people to evacuate their homes as far away as Guatemala City.

According to officials, three of the victims were children:

  • A 15-year-old boy was buried in his house in Pineda de la Lima, 200 kilometres north of the capital, Tegucigalpa.
  • A six-year-old was killed when her house collapsed in the beach town of Morazan.
  • A three-year old was crushed when his roof collapsed in Mapulaca near the Salvadoran border.

Another man died of a heart attack during the earthquake in the seaside town of Tela.

Ana Maria Rivera, a spokeswoman for Honduras' Permanent Emergency Commission, said the quake was felt along Honduras' Caribbean coast.

"People ran from their homes in alarm," she said. "The quake was felt in almost the entire country."

A spokesman for Honduras' firefighters said wooden homes collapsed in Puerto Cortes, about 200 kilometres north of the capital, Tegucigalpa.

A major bridge and a stadium wall were also damaged.

In Belize, people rushed out of their homes as unsecured items crashed to the ground. At least five wooden houses collapsed in three towns, along with a water tower in the town of Independence, local officials said.

"I urge you not to panic, but to remain calm," National Emergency Minister Melvin Hulse said in a radio message. "Your government is monitoring the situation and will be keeping you informed."

In the northern Honduran city of San Pedro Sula, guests at the Gran Hotel Sula ran into the streets in their pajamas.

"I ran out of the building and kept going for about a block before I looked back and everything had calmed," Raul Gonzalez, a receptionist at the hotel, said Thursday. "It was really strong. I have never felt anything like that."

Meanwhile, a tsunami watch was discontinued for Honduras, Belize and Guatemala.

With files from The Associated Press