Two men are being questioned after a fire broke out at a busy hostel on Sydney's Bondi Beach, causing terrified backpackers to leap from windows and balconies.
Smoke engulfed Noah's Bondi Beach hostel about 3.45am (AEDT) on Thursday.
Police believe the fire was started deliberately in a bin outside the hostel, where about 150 people were sleeping.
Two men, aged 21 and 24, were taken into custody on Thursday and were continuing to help officers with their inquiries, police said.
The fire caused the hostel to quickly fill with smoke, triggering alarms and forcing occupants to evacuate, including several who jumped from their rooms.
Four people were taken to hospital, including one person injured while jumping. Others suffered from smoke inhalation.
"A couple of people jumped from windows," a member of staff at the hostel told AAP.
"No one was injured, there was some people taken away with smoke inhalation but there was nothing serious."
A Fire and Rescue NSW spokesman said, "The building was heavily smoke-logged and a number of people were at windows.
"There was obviously a great deal of concern from the occupants."
The fire had been put out in about 15 minutes and there was no major damage to the building, he said.
Shelby Murphy, 20, from Seattle, told Sydney's Daily Telegraph website that she jumped from a second floor balcony to escape the smoke.
Another backpacker, Jack Hardy from England, told the website, "Smoke filled the corridors. You couldn't see the numbers on the doors.
"I woke up to the alarms going off and people banging on our door."
