Results of Open Offer

PEEL HOTELS PLC
31 August 1999


                PLACING AND OPEN OFFER - RESULTS OF OPEN OFFER

The  Company  announces that the Open Offer of 2,166,666 new Ordinary  Shares,
made  pursuant to the Placing and Open Offer by Peel Hunt of 10  August  1999,
closed  at  3.00 p.m. today.  As at that time, acceptances had  been  received
from  qualifying shareholders in respect of 891,642 new Ordinary Shares.  This
level  of acceptances represents approximately 41.2 per cent. of the 2,166,666
shares  available  under the Open Offer and 73.0 per  cent  of  the  1,221,666
shares  available  after excluding the 945,000 new Ordinary  Shares  to  which
Robert  Peel, the Chairman of the Company, was entitled and which he 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 by placees under 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 6  September
1999.