Disposal

Compass Group PLC
28 March 2001


                                                                  28March 2001



                     COMPASS GROUP PLC ('COMPASS GROUP')

                SALE OF STRAND PALACE AND REGENT PALACE HOTELS

The Board of Compass Group is pleased to announce the sale of the Strand
Palace Hotel and the Regent Palace Hotel to London & Regional Properties
Limited for a consideration of £105m in cash of which £98m is payable on
completion.  The sales are conditional on receipt of landlord's consent.  With
the sale of the Cavendish Hotel, announced on 6 December 2000, and the
Cumberland Hotel, announced 14 March 2001, the whole of the London Signature
brand has now been sold for a total consideration of £315m.

The Strand Palace is a 785 room, three star hotel situated in central London,
close to Aldwych on the Strand.  The Regent Palace Hotel is a 919 room 'value
for money' Edwardian hotel located on Glasshouse Street, overlooking Eros and
Piccadilly Circus in London.


Enquiries

Hudson Sandler                020 7796 4133
Nick Lyon / Wendy Baker

Website: www.compass-group.com