Result of Equity Issue

Peel Hotels PLC
28 November 2001


                               PEEL HOTELS PLC


                PLACING AND OPEN OFFER - RESULTS OF OPEN OFFER


The Company announces that the Open Offer of 1,039,999 new Ordinary Shares,
made pursuant to the Placing and Open Offer by Peel Hunt of 7 November 2001,
closed at 3.00 p.m. today.  As at that time, acceptances had been received
from qualifying shareholders in respect of 338,736 new Ordinary Shares.  This
level of acceptances represents approximately 33 per cent. of the 1,039,999
shares available under the Open Offer and approximately 51 per cent of the
665,333 shares available after excluding the 374,666 new Ordinary Shares to
which two directors were entitled and which they undertook not to take-up
under the Open Offer (such shares having been placed firm under the placing
agreement).



The Open Offer shares which have not been taken up by qualifying shareholders
will be taken up under the terms of the placing agreement.



As previously announced, admission of the new Ordinary Shares to AIM is
expected to take place and dealings are expected to commence on 3 December
2001.