A man was pronounced dead at the scene another taken to hospital in a serious condition.
The major response from emergency services could be seen at 531 feet as the blue flashing lights were captured by a webcam on the i360.
A cordon remains in place outside the hostel in Regency Square, Brighton, while forensics teams gather evidences and officers go door to door speaking to neighbours.
A forensic team moved in and out of the building, which residents described as a “hostel” or “halfway house”, throughout the morning.
A spokeswoman for Sussex Police said: “At around 2.10am on Sunday, 26 April, emergency services responded to reports of a fight taking place inside a property in Regency Square.
“Two men were found with stab injuries, and one man in his 30s was taken to hospital in a serious condition.
“The second man, aged 37, was sadly pronounced deceased at the scene a short while later. His next of kin have been informed, and our thoughts are with them at this time.
“At a nearby location, officers arrested a 26-year-old man, of no fixed address, on suspicion of murder, grievous bodily harm with intent, and possession of a Class A drug with intent to supply.
“He remains in custody at the time of writing.”
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