Holding in Company

Peel Hotels PLC
4 December 2001

                               PEEL HOTELS PLC

                           SUBSTANTIAL SHAREHOLDING


The Company has been notified by J P Morgan Securities Limited, on behalf of J
P Morgan Chase & Co and/ or its subsidiaries, that it is interested in the
Company's Ordinary Shares as follows:

                                         No. of Ordinary
                                                  Shares      % of issued share
                                                    held                capital

Alvis Pension Scheme                             101,059

Avimo Pension Scheme                              21,161

The Fleming Mercantile Investment              1,169,838
Trust plc
                                               1,292,058                  10.66



4 December 2001