Four people arrested in connection with a hotel fire which killed three guests will not face charges, police said.

The fire last summer at the Penhallow Hotel in Newquay, Cornwall claimed the lives of Joan Harper, 80, Peter Hughes, 43, and his mother Monica, 86.

Mr Hughes, a teacher from Cheslyn Hay, Staffordshire, jumped from the third floor of the 54-bedroom hotel after trying in vain to save his mother.

Before leaping, he shouted: “I can’t move my mum” and “I can’t breathe, I can’t breathe.”

Ms Harper, of Stoke-on-Trent, was also trapped, while her twin sister, Marjorie Brys, was one of more than 90 people who escaped.

Four people were arrested after the blaze including the hotel’s former general manager Andy Woollam, 42, and his wife Sarah, 36.

Devon and Cornwall Police said that the case file was sent to the Crown Prosecution Service, who decided there was insufficient evidence to bring any charges.

Detective Chief Inspector Darren Lockley said the inquiry was “extremely complex” and the investigation team had collated 3,500 documents and 1,000 statements.

He said: “Today especially our thoughts are with the families of Peter and Monica Hughes and Joan Harper.

“They are still trying to come to terms with the loss of their loved ones, but this will always be difficult without knowing exactly why this tragedy happened.

“We feel we have been thorough and meticulous in our approach to this investigation.

“This inquiry is still open and we remain committed to investigate any information that comes to our notice.”

A murder investigation was launched by police who said the fire, which ripped through the building in the early hours of Saturday August 18, was started deliberately by a naked flame.

On the first anniversary of the blaze, which firefighters said was the worst Britain had seen for 30 years, DCI Lockley appealed for the person responsible to “be brave” and come forward to explain to the families what happened.

He told a news conference that he did not believe the person intended to kill Mr and Mrs Hughes or Ms Harper.