A 67-year-old man has been arrested on suspicion of two counts of murder after two residents died following a fire at St Michael’s Hospice in St Leonards on Sea this weekend.

More than 20 palliative care patients and nine members of staff had to be evacuated from the charity when a fire broke out in the early hours of Saturday morning.

One patient died shortly afterwards and a coroner’s report will be needed to determine if this was a direct result of the fire. Two other patients with life-limiting illnesses who were being treated in hospital for smoke inhalation have also died.

Police arrested a 67-year-old man, who is known to the hospice, on Saturday on suspicion of arson with intent to endanger life and he was further arrested on Sunday on two counts of murder.

Celia Pyke-Lees, chief executive of St Michael's Hospice said: "We are extremely grateful to the police, fire services, local care homes and the hospital for their support. We would also like to extend our thanks to all staff, volunteers and supporters for all their support. Thank you for all your kind donations received so far which are helping us make our patients more comfortable."

The charity is waiting for the police to hand the building back before a structural engineer can assess the damage and develop a plan. Patients have been moved to the Conquest Hospital and neighbouring care homes.

St Michael’s Hospice has an income of £5.7m and employs 136 people. According to its accounts for the year ending March 2014, the charity had £2.9m in unrestricted reserves.