Acqn Completed/Director Shldg

PEEL HOTELS PLC
7 September 1999



            COMPLETION OF ACQUISITION AND DIRECTORS' SHAREHOLDINGS

The  Company announces that the acquisition of the Golden Lion and  Caledonian
Hotels  was  completed yesterday and the 2,166,666 new Ordinary  Shares  which
were the subject of the recent Placing and Open Offer were issued and admitted
to trading on AIM.

The   Company  has  been  notified  by  the  following  Directors   of   their
subscriptions,  at  the offer price of 180p per share,  for  shares  yesterday
issued to them under the Placing and Open Offer:



                                             
                                           No. of       
                    No. of     % of      Ordinary        % of
                  Ordinary  enlarged       Shares    enlarged
                    Shares    issued         held      issued  
                subscribed     share    following     capital
                             capital        share
                                     subscription    
                                    
                                                      
R E G Peel          55,000     0.63     3,055,000      35.25
                                           
N P G Petersen      48,332     0.56      193,332        2.23

J Perkins           10,000     0.12       10,000        0.12

C J Govett          25,000     0.29      275,000        3.17

K P Benham          26,000     0.30      160,000        1.85