Five backpackers were allegedly duped into handing over cash deposits for rooms in a closed-down hotel.

The tourists, Europeans and an Australian, are believed to have each paid £250 for accommodation at the former Squirrels Hotel in Montpelier Road, Hove, closed since being sold last month.

Police believe a man showing visitors around yesterday was not the new owner.

A security guard called police after the backpackers realised they had been tricked.

Five officers arrived at the hotel at about 6pm, accompanied by two security guards.

One said: "These people came to move in today at the same time and he has run off with all their money - about £250 each."

A police spokeswoman said: "A security guard had come back to the hotel to find lots of people there saying they'd paid deposits to live there.

"He told them, 'Sorry, this place has been sold, you can't live here.' He thought there was going to be trouble because of the people turning up."

A man was arrested but later released, she said. It was now a civil matter for the tourists to pursue.

The backpackers, left to find alternative accommodation, declined to comment.