THO Thistle Hotels

RNS Number:9981K
Morrison Construction Group PLC
22 May 2000



THISTLE HOTELS AND MORRISON CONSTRUCTION GROUP FORM #140m JOINT
VENTURE TO DEVELOP NEW PROPERTIES


Thistle Hotels and Morrison Construction Group plc have today
reached agreement to develop and own up to ten hotels in Britain
and Ireland over the next five years.

Thistle and Morrison will form a special purpose joint venture
company.  The JV will expand Thistle's managed hotels portfolio
in the UK by developing well designed, well managed hotels on
carefully selected sites.  For Morrison the move represents a
significant step forward in the company's programme of forming
strategic alliances with clients.

Target locations have been specified by Thistle, and Morrison
will secure sites, obtain planning consent and provide
development and construction services to the new joint venture,
including design, procurement, construction and fit out.  Each
hotel will be purchased by the joint venture and managed by
Thistle under a management agreement.

Ian Burke, chief executive, Thistle Hotels said:

'The development of new full service Thistle hotels in locations
where we do not already have a presence is the logical next step
in creating additional profit and value growth.

'We're very pleased to from a joint venture with Morrison.  We
evaluated a number of companies in the UK property industry and
chose Morrison because of  its expertise in development and
construction and because of its willingness to retain a long-
term ownership stake.'

Steve McBrierty, Morrison's Group Director of Operations, said:

'This joint venture with Thistle Hotels represents a significant
opportunity for Morrison to bring its unique, quality driven
approach to the hotels sector.  It demonstrates our ability to
deliver on our committed strategy of growing our business
through development partnerships.

'With over 30 offices throughout the UK and Ireland, we are well
placed to secure attractive sites and develop high quality
hotels for the joint venture.  We look forward to working
closely in the hotel sector with such a respected market player
as Thistle.'


ABOUT THISTLE HOTELS PLC

Thistle Hotels is one of the UK's leading hotel companies with
56 properties and just under 11,000 bedrooms in key city centre
and countryside locations.  The Group is the largest hotel
operator in London, with 23 hotels in prime locations throughout
the capital.  It is over half way through a three-year programme
to develop a portfolio of quality full service hotels, operating
under a strong and widely recognise brand, in locations ' where
you want to be'.

About Morrison Construction Group plc

Founded in Scotland in 1948, Morrison Construction Group has
grown steadily for over 50 years to become one of the most
respected construction, development and asset management
companies in the UK.

Listed on the London Stock Exchange in 1995, Morrison employs
over 3000 people in three divisions, covering all sectors of the
development and construction industry.

With a Group turnover to 31 March 1999 of #414 million.
Morrison's continuing focus remains to work ever more closely
with clients and partners, building on a well established track
record of creating successful development and construction
partnerships.

Morrison has extensive experience of the hotel market, having
developed and built a range of hotels for a variety of clients
around the world, including those recently completed in:

Edinburgh - an #8 million, 158-bedroom four-star hotel adjacent
to the site of the new Scottish parliament in Edinburgh, for
Holyrood Hotels.

Glasgow - a #9 million, 111-bedroom Stakis hotel in the
Strathclyde Business Park, Glasgow.

Johannesburg - a recently completed #10 million, 240 bedroom
hotel within the grounds of the famous Wanderers Club in
Johannesburg for South Africa's premier hotel group, Protea.

For further press information, please contact:

Kate Spencer
Thistle Hotels Plc
Tel: 020 7723 8383
Fax: 020 7723 2012
Email: Kate.Spencer@Thistle.co.uk

George Hulbert
Morrison Construction Group plc
Tel: 020 7499 0338
Fax: 020 7493 6719
Email: george.hulbert@morrcon.co.uk


END
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