Director Shareholding

Peel Hotels PLC
4 December 2001

                              PEEL HOTELS PLC

               DIRECTORS' SHAREHOLDINGS FOLLOWING OPEN OFFER

The Company has been notified by the following Directors of their
subscriptions, at the offer price of 87p per share, for shares yesterday
issued to them under the Placing and Open Offer:

                                                                              
                          No. of          % of   No. of Ordinary          % of
                 Ordinary Shares      enlarged            Shares      enlarged
                      subscribed        issued    held following        issued
                                         share      subscription         share
                                       capital                         capital

  R E G Peel           1,206,896          9.96         4,262,451         35.17

  N P G Petersen          26,799          0.22           250,131          2.06
                                                                     
  C J Govett              25,000          0.21           300,000          2.48

4 December 2001