Cigarette may have caused NSW hostel blaze

A hostel fire that left two people in hospital and forced dozens out of their accommodation may have started with an unattended cigarette.

Fire fighters used ladders to pull people out of a small window at the hostel in Concord, in Sydney's inner west, on Wednesday night after fire engulfed the bottom level. Two men were taken to hospital with smoke inhalation and minor burns.

It was initially feared several of the 35 residents staying at the hostel on Parramatta Road at Concord were missing.

But after searching 28 rooms at the budget accommodation, fire fighters have accounted for all residents.

The blaze has been extinguished but the building's three levels are smoke affected.

NSW Police say it is investigating whether an unattended cigarette sparked the blaze.

Several people have been put into emergency housing.