The devastating fire broke out at 0015 BST on Saturday. It ripped through the four-storey Penhallow Hotel leaving behind a gutted shell.
One man is known to have died in the blaze. Police believe he fell from a second-floor window. Five other people were injured, two critically.
Four people are still missing. Chief Constable Stephen Otter said: "The longer we go on the more concerned we become for the welfare of those people."
The clifftop hotel was close to capacity at the time of the blaze. Most guests were holidaymakers from the north-west of England. More than 80 people escaped safely.
The hotel had a timber fire escape. Cornwall Fire Brigade chief officer Matt Littmoden said there had been issues over its "structural integrity".
Specialist demolition teams were called in on Saturday to pull down the upper floors of the building and make the structure safe.
Police say the fire is still smouldering. They are waiting for it to go out completely before they can carry out a detailed search of the building.
Officers are investigating a burglary at the hotel which took place at about 1900 BST on Friday. They say they are not currently linking it to the fire.
Floral tributes and messages of condolence have been laid at the hotel, which is popular with coach tours.
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