A fire that led to a dramatic rescue of seven people from apartments above the Clay House Inn on New Year's Day is being treated as suspicious.

A fire chief said last night that the blaze, which happened at about 4 a.m. on Tuesday, may have been started maliciously.

Lieutenant Malcolm Johnson, of Bermuda Fire Service headquarters, said: "The fire is being deemed to be of suspicious origin, which basically means that arson has not been ruled out.

"We don't know what the cause is, but evidence at the scene leads us to believe that it is of suspicious origin. Obviously, there are things that I can't release. The report is being formulated now and will be released to the chief fire officer."

He added: "Early next week, he will possibly be able to release an official comment on it. All I can say at this stage is that it could have been of malicious intent."

Anyone with information about the blaze, which is estimated to have caused $15,000 damage to the four apartments above the Clay House Inn on North Shore Road, Devonshire, should call Police on 295-0011.