BRITISH holidaymakers accused of starting a Magaluf hotel fire have been released by police but cannot come home yet, it is understood.

Relatives of Bandon McCahill have been told his passport has been seized and he and his two friends will have to pay around £26,000 towards the damage caused.

It follows a fire in the Spanish resort on Sunday evening.

Around 100 residents were evacuated following a prank that involved setting fire to a friend’s feet using an aerosol and a lighter.

National newspapers have reported that Mr McCahill, 21, and his friend, James Brown, both 21, from Consett, were arrested along with two 19-year-old women, named as Georgia James and Lauren Smith.

All four were escorted to a private court hearing in Palma, the capital of Mallorca, by a uniformed Civil Guard officer on Tuesday.

The Northern Echo understands Mr McCahill has sent a message to his family to say he was out of jail but and needed to raise over £8,000 before his passport will be returned to him.

A hotel room was destroyed in the fire and it is understood an investigation has found the seat of the fire to be mattress, with the damage valued at around £175,000.

Several people had to be rescued from the hotel during the blaze and some, including three Civil Guard officers, were treated for smoke inhalation.