RNS No 4298p
THISTLE HOTELS PLC
3rd September 1998


                THISTLE HOTELS PLC ANNOUNCES SALE OF 30 HOTELS
                                       
                                       
LONDON, 3rd September 1998 - Following the Board's decision to rationalise its
portfolio,  Thistle  Hotels Plc has today announced the  sale  of  30  of  its
provincial hotels to Pamco (UK) Limited, a wholly owned subsidiary  of  Lehman
Brothers,  the  global  investment bank, for #66 million.  Last  year  profits
attributable to the disposed assets was #8.7 million and their net book  value
at  28 December 1997 was #93 million.  The consideration will be paid in  cash
upon  completion in early October. The net proceeds of the sale will be  added
to  the  existing  cash  resources of the Company.  The disposal  takes  total
proceeds from asset sales in the current year to #79 million.

Commenting  on  the disposals, Chief Executive of Thistle Hotels,  Ian  Burke,
said  "The  sale  of 30 hotels, which do not fit within the Company's  overall
strategic  plans, will allow us to focus upon the remaining hotels, which  are
predominantly four star properties operating under the Thistle brand."

Wilson  Lee,  Executive Director and Co-Head of European  Mortgage  and  Asset
Backed  Finance  at  Lehman Brothers commented, "This  transaction  underlines
Lehman  Brothers'  commitment  to  the  European  real  estate  business   and
reinforces  a  strategy of principal investment in the European  mortgage  and
real  estate markets aiming to provide exit strategies for non core assets  of
major companies."

The  acquired  hotels  will be managed by Peel Hotels  PLC,  the  new  company
founded  by  Robert  Peel (the former Chief Executive  of  Thistle)  under  an
incentivised management arrangement.
                                      
Lehman  Brothers  is  a  global investment bank with leadership  positions  in
corporate  finance  and advisory services, capital market sales,  trading  and
research.    Lehman  Brothers  serves  the  financial  needs   of   corporate,
governmental, institutional and private clients through offices in  all  major
financial centres worldwide.

CONTACTS:

For further information, please contact:

Nick Denton - Hogarth Partnership               0171 357 9477
Ian Burke - Chief Executive, Thistle Hotels     0171 723 8383
Julia  Record - Director of Public  Relations,  0171 723 8383
Thistle Hotels                                  

Lehman Brothers                                 

Wilson Y Lee                                    0171 260 2734
Andrew Pettit                                   0171 260 2570
Richard Creswell, Corporate Communications      0171 260 2191

Notes to Editors

List of disposed hotels

Apollo, Birmingham
Astor, Plymouth
Bedford Arms, Woburn
Bedford Arms, Rickmansworth
Crown & Mitre, Carlisle
George, Wallingford
Glen Usk, Llandrindod Wells
Hand, Llangollen
Hospitality Inn, Harrogate
Hospitality Inn, Portsmouth
Merrion, Leeds
Redcar, Bath
Shelleys, Lewes
Ship, Weybridge
St. George, Darlington
Strathdon, Nottingham
Windermere Hydro, Windermere
Barnton, Edinburgh
Invercauld Arms, Braemar
Johnstounburn House, Edinburgh
King Malcolm, Dunfermline
Macdonald, Glasgow
Mercury, Aviemore
Mercury, Ellon
Mercury, Fort William
Mercury, Moffat
Tinto Firs, Glasgow
Avon Gorge, Bristol
Golden Lion, Leeds
Hospitality Inn / Northumbria, Newcastle

END

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