Holding these for shareholder discount and the belief that someone will come along with a plan on what to do with them .....

Now could be the right time to get in for a ride northwards with little downside risk


ains


Thread started at 95p mid - currently at a high of 129p - up 35.79%








Investec Securities took the stock off its "sell" list citing among other factors the potential for "corporate action".


Banks call in Ernst & Young to check out Thistle Hotels
By Lauren Mills and Damian Reece (Filed: 02/02/2003)


Thistle Hotels' bankers, led by the Royal Bank of Scotland, have hired Ernst & Young to carry out a review of the business which could lead to sweeping management changes and disposals at the hotels group.

Although Thistle has around 320m in the bank, the banks are thought to be alarmed at the group's precarious trading position. They are also said to be questioning the ability of the management to steer the company through a period of uncertainty in the market.

In January, Thistle revealed a 10.5 per cent drop in average room rates in London last year. It also refused to give details of how it planned to spend the cash raised through the disposal of 31 regional hotels to Orb Estates last March for 600m. As part of the deal, Thistle retained management contracts to run the hotels.

The group also admitted it would be difficult to forecast turnover for 2003 because it remained "cautious as to when there will be a recovery in general hotel trading conditions".

Ernst & Young is expected to report back to the banks on the company's overall financial strength within the next two weeks. E&Y is likely to focus on current trading, as well as prospects for improving performance in a relentlessly difficult market.

The accountancy firm will also advise the banks on a range of strategic options including further disposals.

Thistle's shares rallied 9p to 98p at the end of last week after Investec Securities cited "corporate activity" as a reason for taking the stock off its "sell" list.

Ian Burke, the chief executive, is under mounting pressure to clarify whether he plans to return the cash to shareholders or spend it on acquisitions.

His indecision is causing friction among Thistle's leading institutional shareholders who hold differing views about what should be done with the cash.

The two biggest shareholders, each of which has a seat on the board, are BIL International, which owns 45.8 per cent, and the Government of Singapore which has a 13.1 per cent stake.

Other large investors include Havelock Investments and Tweedy Brown Company.

A spokesman for the company insisted it knew nothing of E&Y's review. He also confirmed that Burke would update the City with a strategic plan for the group when it announces its year-end results in early March.

PRELIMINARY ANNOUNCEMENT OF AUDITED RESULTS

FOR THE 52 WEEKS ENDED 29 DECEMBER 2002


HIGHLIGHTS

* Disposal of 37 hotel businesses for #598.6 including #45 million of
deferred consideration - at approximately book value.

* Second half turnover in owned or leased hotels ahead 1.9% against
second half 2001.

* Free cash flow #22.9 million comparable with prior year.

* Final dividend maintained at 3.4p per share.

* Cost reduction initiatives continuing in response to market
conditions.

* Cash balances at year end #367 million.





Commenting on the results, Chief Executive Officer, Ian Burke said:



"Revenue for the first eight weeks of the current year in our 18 owned or leased
hotels is 1% ahead of the comparable period in 2002. Our policy has been, and
will continue to be, to contain costs and to generate and conserve cash in what
we anticipate will be an uncertain economic climate in the months ahead."



David Newbigging, Chairman, said "Following discussion with the two largest
shareholders, who between them control approximately 66% of the Company, the
Board decided to retain the surplus cash in the Company for the time being.
However, depending on the outcome of the announcement made by BIL International
Limited on 21 February 2003 regarding a possible offer for Thistle, this policy
will be reviewed to seek to ensure that full value for this cash is obtained by
all shareholders."

03/03 07:13
Thistle Hotels Full-Year Profit Falls 42% on Slump in Travel
By Paul Jarvis


London, March 3 (Bloomberg) -- Thistle Hotels Plc, the U.K. hotels operator whose biggest investor is considering buying the rest of the London-based company, said full-year profit declined 42 percent following a slump in international business travel.

Net income for the year ended Dec. 29 fell to 21.8 million pounds ($34.3 million), or 4.5p a share, from 37.4 million pounds, or 7.7p, a year earlier, Thistle said in a Regulatory News Service statement. The annual dividend is unchanged at 5.1p a share.

Thistle and rivals with luxury rooms in city centers have suffered more than cheaper hotels as sluggish economic growth deterred corporate and long-haul travel. The company is 46 percent-owned by Singapore-based BIL International Ltd., which said last month it may make an offer for the rest of the shares.

``There has been no perceptible improvement in economic conditions worldwide during the early months of 2003,'' Thistle said in the statement. Revenue in Thistle's 18 owned or leased hotels rose 1 percent in the first eight weeks of the new year.

Heavy early morning volume and up 2.33%



Thistle on hold as it awaits Brierley
Jim Armitage, Evening Standard 3 March 2003

HISTLE Hotels was today stuck on full bid alert as it waited for a 600m offer from major shareholder Brierley Investment. Insiders had expected an offer could come as early as today, timed to correspond with Thistle's annual results statement, which revealed a sharp fall in profits and turnover.



Brierley, which owns 46% of the company, and the government of Singapore, owner of 13%, have stopped chief executive Ian Burke from returning its 367m cashpile to shareholders. The bidder is thought to be keen to keep hold of the cash as part of its deal, which is expected by some on the board to undervalue the shares if it comes in at the 110p level widely mooted. Burke today said he remained unable to offer any share buybacks or other ways of returning the cash to shareholders until the Brierley situation was resolved.


Pre-tax profits in the year to 29 December were 27.9m against 49.1m a year earlier on sales of 190m against 305.3m last time. The steep decline reflected the loss of income from 37 London and regional hotels sold last year to privately owned Orb Estates - a deal now the subject of litigation between the two sides. The downturn in tourism due to global terrorism and the threat of war in Iraq also had a heavy impact. The final dividend* is pegged at last year's level of 3.4p.




2003 Associated Newspapers Ltd.

LONDON (AFX) - Thistle Hotels PLC said there has been no perceptible improvement in economic conditions worldwide during the early months of 2003, as it announced a fall in profit before tax and exceptionals, reflecting the challenging trading environment and the loss of profits from the disposal of 37 hotel businesses during the year.
Pretax profit before exceptionals dropped back to 30.9 mln stg, from 45.5 mln stg and adjusted EPS, excluding the exceptional profit on sale of fixed assets and loss on disposal of businesses, was 5.2 pence, compared with 7.0 pence last year.

Analysts had been expecting the hotelier to report profits before tax and exceptionals of 27.5-34.9 mln stg.

Its final dividend has been maintained at 3.4 pence per share.

Thistle said it is continuing its cost reduction initiatives in response to the poor market conditions, having disposed of 37 hotel businesses for 598.6 mln stg during the year.

Second half turnover in owned or leased hotels was up 1.9 pct compared with the same period of the previous year.

"Revenue for the first eight weeks of the current year in our 18 owned or leased hotels is 1 pct ahead of the comparable period in 2002. Our policy has been, and will continue to be, to contain costs and to generate and conserve cash in what we anticipate will be an uncertain economic climate in the months ahead," chief executive Ian Burke said.

Thistle added that it has decided to retain its surplus cash for the time being and its net cash position on Dec 29 was 107.7 mln stg. But depending on the outcome of BIL's possible offer for the group, this policy will be reviewed to ensure full value for this cash is obtained by all shareholders.

etain.lavelle@afxnews.com

seems to me that some peeps are trying to talk this one down - ahead of a bid ....



03 Mar 2003 09:56 GMT

UPDATE 1-Thistle stabilises, but prospects bleak

(Adds CEO, analyst comments, detail, background, shares)
By Mark Potter

LONDON, March 3 (Reuters) - Thistle Hotels Plc, whose biggest shareholder is considering making a bid for the firm, said on Monday trading had stabilised but prospects remained bleak as fears of war and economic downturn deterred travellers.

London's largest hotelier said revenues at its 18 owned or leased hotels rose one percent in the first eight weeks of 2003 but were still well down on normal trading conditions.

Hotels across the world are suffering from a drop in tourism and business travel, sparking a flurry of speculation about potential mergers and acquisitions.

Analysts said there was some relief the news from Thistle was not worse following profit warnings from rivals Jarvis Hotels JVH.L and Macdonald Hotels MDH.L last week.

"But it's the prospect of a bid that's really supporting the shares," said Mark Reed, an industry analyst at stockbrokers Teather & Greenwood.

At 0930 GMT, Thistle shares were 3.6 percent higher at 116 pence, valuing the owner of The Royal Horseguards and Thistle Tower hotels at about 558 million pounds ($879 million).

Singapore investment firm BIL International BRY.SI said on February 21 it might make an offer of a little over 98.5 pence for the 54 percent of Thistle it does not already own.

Thistle Chief Executive Ian Burke declined to comment on the offer approach on Monday.


BID BATTLE?

The hotel chain also posted a declined in profit before tax and exceptional items to 30.9 million pounds in 2002 from 45.5 million in 2001, after it sold 37 hotels, although retaining management control of them, in a deal with Jersey-based investor Orb Estates last April.

Analyst forecasts had ranged between 27.5 million and 35.8 million.

Thistle also declared a full-year dividend of 5.1 pence, unchanged from 2001.

Speculation over mergers and acquisitions have rekindled interest in a sector that has been feeling the brunt of global security concerns and fears of a war in the Middle East.

Leisure entrepreneur Hugh Osmond on Monday launched a hostile 5.5 billion pound bid for Six Continents SXC.L , the owner of InterContinental, Holiday Inn and Crowne Plaza hotels.

Thistle has long been considered a takeover target, with management coming under pressure for poor performance and its reluctance to return cash to investors after raising 598.6 million pounds from the deal with Orb Estates.

Thistle, which used some of the money to pay down debts, said that after consulting with its two biggest shareholders -- BIL and the government of Singapore -- it had decided to retain the 367 million pounds of cash on its books for the time being.

CEO Burke said Thistle was coping with tough trading conditions by focusing on the more resilient short-breaks market and cutting costs and that it had outperformed its rivals in London since the middle of 2002.

Analysts said other hotel groups were unlikely to want to buy a London-based hotelier in the current environment but that property funds could be interested in Thistle because its shares are trading well below the value of its assets.

Teather & Greenwood's Reed said the firm's assets were worth at least 170 pence per share.

He trimmed his 2003 profit forecast to around 38.5 million pounds from 39.6 million but kept his "buy" investment rating on Thistle shares.

Thistle is stung by profit fall


THISTLE Hotels, owner of 56 hotels including one in Edinburgh, today reported a 22.4 per cent decline in full-year profits and said trading conditions remained difficult as it unveiled a one per cent rise in revenues for the first eight weeks of 2003.

For the 12 months to December 29, the group posted a pre-tax profit of 30.9 million, down from 45.5m for the previous year. Analysts had forecast profits of between 27.5m and 35.8m.

Thistle has suffered more than cheaper rivals as sluggish economic growth has deterred business travel. The company is 46 per cent owned by Singapore-based BIL International, which last month said it might make an offer for the rest of the shares.

Chief executive Ian Burke said: "Our policy has been, and will continue to be, to contain costs and to generate and conserve cash in what we anticipate will be an uncertain economic climate in the months ahead."

I must agree with you "that some peeps are trying to talk this one down". There has been so much bad press - quite a bit of it untrue, its does make me ask questions. Perhaps they are trying to make shareholders like myself (are there many of us left?) want to off load.

The "independant directors of Thistle" (all directors other than the ones who are also BIL directors) sent me a letter dated 25 Feb confirming that they had not received any formal approach and advising me not to take any action.

So what do you make of that?

I think that is the idea ....... to generate an impression that without their bid we will have a fall back to the lows with little short/medium term hope of seeing either a bid from elsewhere or a recovery. They clearly don't want to give the cash back as it will highlight the low bid value against assets.


I intend to stay with them at this time and expect the non exec directors to look after our interests. There are two other big investors who held around 13% between them at the beginning of the month.

We are up another 5% plus on heavy volume (4 times average) - we started the thread at 95p and now up to 118p mid giving plus 24% - some may well take profits.


ains

some cautious broker comment in the wake of the firm's wary comments on current trading, which accompanied in-line full year profits, traders said.

Earlier, Thistle said pretax profit before exceptionals dropped back to 30.9m, from 45.5m and adjusted EPS, excluding the exceptional profit on sale of fixed assets and loss on disposal of businesses, was 5.2 pence, compared with 7.0 pence last year. But it also warned there has been no perceptible improvement in economic conditions worldwide during the early months of 2003.

WestLB Panmure reiterated its 'underperform' rating and 115 pence target, saying that while its preliminary figures came in ahead of forecast, it sees further downside pressure on the shares in 2003. It added that the results lagged behind the consensus numbers due to a deferred 1.7m of interest income related to the disposal proceeds of the regional hotels. After a tough 2002 in which Thistle's RevPAR in London dropped 8.2 pct, the broker believes RevPAR in London is unlikely to advance significantly in 2003. Consequently, WestLB said it is unlikely to raise its forecasts for 2003. It expects no short-term upturn in the London market, and also attributes its cautious stance to the weak brand, difficulties with Orb Estates and limited further cost-cutting potential. Only consolidation news could lift the shares, and Singapore's BIL International Ltd's potential offer will only be at a "modest" premium to the price at the time of 98 pence.

Elsewhere, Credit Suisse First Boston also reiterated its 'underperform' rating saying the shares are still expensive relative to the sector. Though figures were broadly in-line with forecasts, the company's cost of debt remains a drag. And finally Cheuvreux also stuck with its 'underperform' rating, based on fundamentals alone, though it added that if the restructuring is successful, there is scope for a more positive rereading of the firm's position. The broker said pretax before exceptionals and goodwill was well below its own forecast, even though it had downgraded numbers four times in 2001.

March 04, 2003

Thistle defends 600m property deal
By Dominic Walsh TIMES



THISTLE HOTELS yesterday defended its signing last year of a 600 million sale-and-leaseback deal on 37 of its sites with Orb, a Jersey property firm, despite doubts that it will receive 60 million still owed.
Orb, which is at the centre of a Serious Fraud Office investigation into Izodia, the software firm, is being sued by Thistle for refusing to pay 15 million of the sale price and is looking to sell the hotels after defaulting on some of the loans taken to fund the deal.

Thistle confirmed that Orb was countersuing for 54 million, which is the amount it claims the net asset value of the hotels it acquired was overstated by Thistle.

Also in doubt is 45 million of deferred proceeds received in the form of a loan note. Thistle yesterday reversed a 41.3 million one-off profit taken against the sale after delaying recognition of the payment until it receives the money.

Ian Burke, Thistles chief executive, said that he was confident the company would still receive the 60 million, but that, even if it was never paid, the funds received for the 37 hotels represented 92 per cent of their book value. The litigation is taking up a considerable amount of my personal time, but I still think it was a good deal for Thistle, he said.

Thistle would not comment on a bid approach from BIL, its 46 per cent shareholder.

For its year to December 29, Thistle reported a 32 per cent fall, to 30.9 million, in profits, before tax and exceptionals, on turnover 38 per cent lower at 190 million. The dividend stays at 5.1p, after a final 3.4p.The shares rose 6p to 118p.

looks to me like hot news is on it's way ..... up another 4.6% on modest volume but higher than normal

122/125p


ains

There we go ..... a bid it is ..... just

They have to be joking 115p in cash ....... hmmmmmmmmmm



ains

If the directors support the bid I will refer the matter ......




LONDON, March 4 (Reuters) - Singapore investment firm BIL International said on Tuesday it had a made an offer for the 54 percent of Thistle Hotels Plc THO.L it does not already own, valuing the firm at 554.7 million pounds ($878.4 million).
BIL said it was hopeful of gaining Thistle's support for its 115 pence per share cash bid.

Tuesday March 4, 8:13 AM
BIL To Announce Thistle Bid Soon - HSBC

Contact Us: Singapore (65) 6415-4153

0813 [Dow Jones] BIL (B16) likely to draw more buying interest (stock up 3.3% at 47.5 Singapore cents yesterday), after adviser HSBC confirms that investment company to make bid for UK-based Thistle Hotels fairly soon. London Sunday Times recently reported BIL mulling GBP600 million bid for rest of 46%-owned Thistle Hotel, which owns 55 hotels and sits on cash-hoard of about GBP 340 million. Going by reported offer price, BIL will be getting Thistle at good price, if bid succeeds, and this should be positive to its share price. First psychological resistance for BIL at 50 Singapore cents. (EYG)

Figures see Thistle ripe for takeover Mar 4 2003




By The Journal


Thistle hotels was at the centre of takeover speculation yesterday as it reported "no perceptible improvement" in trading after seeing profits fall in 2002.

Underlying pre-tax profits dropped 32pc to 30.9m in the year to December 29, a fall of 14.6m including one-off items mainly concerning the 598.6m sale of 37 hotels last April.

The possibility of a 600m takeover for Thistle from 46pc shareholder Brierley Investment has caused concern among analysts who believe this would under-value the company.

Media reports said the deal would value the company at up to 125p a share, when analysts consider Thistle worth 180p to 220p a share.

Brierley's position is said to be strengthened by support from the Singapore government, a 10pc stakeholder. Thistle, which runs 56 UK hotels, was not commenting on the speculation but said directors would be "watching the situation closely".

On trading, the company said there had been no recent improvement and it could not predict when an upturn might come.

Revenue per available room fell 6.8pc in the year to 56.81. The average room rate was down by 10pc to 74.56 as fewer business travellers and more lower-spending leisure customers used Thistle hotels.

Thistle runs 38 hotels under management contracts where revpar fell 3.8pc year-on-year to 39.15. Revpar outside London was comparable with 2001, with a good performance from the Thistle Middlesbrough.

Final dividend was 3.4p, making 5.1p for the year.

Tuesday March 4, 2:45 PM
Thistle Hotels Profit Falls,Mum About BIL Buy
(This story was originally published Monday)

By Nina Stechler Hayes



Of DOW JONES NEWSWIRES

LONDON (Dow Jones)--Hotel operator Thistle Hotels (U.MTC) reported a 32% fall in full-year pretax profit Monday and didn't clarify if its biggest stake holder will buy the entire company.

Thistle is 46% owned by Singapore-listed BIL International (D.BIL), which recently said it is considering making an offer for the remainder of the company. As London's largest hotel owner, Thistle owns valuable properties but its growth opportunities are limited. It also continues to sit on a GBP350 million cash pile.

"Clearly management are expecting something to happen because they have delayed returning cash to shareholders," said Teather & Greenwood analyst Mark Reed, adding he expects a bid from BIL in the medium term.

BIL said on Feb. 21 it might make an offer at "modest premium" to Thistle's share price, which at the time was 98.5 pence. Analysts believe a bid could be the best option for Thistle. Reed said a realistic offer would be around 170 pence per share.

"Discussions are taking place and a bid may be forthcoming fairly soon. We are talking days rather than weeks," Neil Goldie Scot, an investment banker with HSBC, which is advising BIL, told Dow Jones Newswires.

In a statement Thistle said it is "watching the situation closely."

At 1605 GMT Thistle shares were up 5.8% or 6.5 pence at 118.5, buoyed by the bid potential and slightly better-than-expected start to the year.

Thistle reported pretax profit for the 52 weeks to Dec. 29 at GBP30.9 million from GBP45.5 million a year ago. The fall was further evidence that U.S travelers continue to stay away from the U.K.

But the results were in line with analysts forecasts of between GBP27 million to GBP35 million. Before exceptional items relating to the sale of 37 hotels to the Orb Group in April, pretax profit fell to GBP27.9 million from GBP49.1 million.

Along with the rest of the travel sector, Thistle has seen a big fall in business during the last two years. The company's London hotels have been the worst-hit as business travelers scale back travel plans and U.S. tourists stay at home.

As a result, sales for the year fell to GBP190 million from GBP305.3 million while revenue per available room or RevPAR - a key industry benchmark figure - across its portfolio fell 5.6%. RevPAR at Thistle's 18 owned or leased hotels fell 6.8% while RevPAR at its 38 managed hotels was down 3.8%.

But the company said although trading remains difficult, revenue for the first eight weeks of the year in its owned or leased hotel is 1% ahead of the same period last year.

Thistle Chief Executive Ian Burke told Dow Jones Newswires this increase has been driven by occupancy, with more visitors from the Continent.

"We do see that market as being robust, which reflects a confidence in short-haul travel," he said, adding that infrastructure improvement and the weakening pound against the euro helped.

Company web site: http://www.thistlehotels.com

By Nina Stechler Hayes, Dow Jones Newswires; +44-(0)- 20-7842-9275; nina.hayes@dowjones.com

(Abdul Hadhi in Singapore contributed to this report.)

dropped a little from the pre bid intraday high but no real selling and volumes a little above average at 600K - shares still up on the day

ains


04 Mar 2003 11:38 GMT

UPDATE 1-BIL makes 555 mln stg bid for Thistle

(Adds detail, background, shares)
LONDON, March 4 (Reuters) - Singapore investment firm BIL International made a cash bid on Tuesday for the 54 percent of Thistle Hotels THO.L it does not already own, valuing London's biggest hotelier at 554.7 million pounds ($878.4 million).

BIL, which is controlled by Malaysian tycoon Quek Leng Chan, said Thistle directors had not recommended its 115-pence per share bid, but that it was hopeful of winning the firm over.

A spokesman for Thistle, which owns The Royal Horseguards and Thistle Tower hotels, declined to comment.

BIL, which floated Thistle in 1996 at 170 pence per share, said its offer was a 15 percent premium to the closing price of Thistle shares on February 20, the day before BIL said it was considering making an offer.

"BIL now believes that the further development of the company would be best achieved in the private arena, away from the cyclicality of the public equity markets, which, given the current uncertain global economic and political climate, BIL believes are unlikely to benefit existing Thistle shareholders," the Singapore firm said in a statement.

At 1125 GMT, Thistle shares were 1.7 percent higher at 120p.

Hotels across the world are struggling with faltering consumer spending in the global economic downturn and a drop in international travel amid fears of war.

But Thistle has suffered more than most, as 16 of its 18 owned or leased hotels are in London, and so heavily reliant on international and business markets.

Thistle has long been considered a takeover target, with management coming under criticism for poor performance and reluctance to return cash to investors after raising 598.6 million pounds last April from a deal with Jersey-based investor Orb Estates to sell, but retain management of, 37 hotels.

In January, Orb Estates decided against a bid for Thistle after saying last November it was considering an offer at a modest share price premium.

Thistle's market capitalisation is currently trading well below the value of the firm's assets, which analysts estimate as worth at least 170p per share.

03/04 11:24
BIL, Thistle Hotels' Biggest Investor, Bids for Rest (Update1)
By Gabrielle Monaghan


London, March 4 (Bloomberg) -- BIL International Ltd., the biggest investor in Thistle Hotels Plc, offered to buy the rest of the U.K. hotels operator in a bid that values the company at 554.7 million pounds ($875 million).

Singapore-based BIL, which owns 46 percent of Thistle, offered 115 pence a share in cash, it said in a Regulatory News Service statement. That's 4.2 percent less than yesterday's closing share price.

Thistle and rivals with luxury rooms in city centers have suffered more than cheaper hotels as sluggish economic growth deters corporate and long-haul travel. The company, which runs 24 central-London hotels, including The Royal Horseguards, yesterday posted a 42 percent decline in full-year profit.

The offer gives shareholders ``an opportunity to realize in cash their investment in Thistle whilst removing the risk and uncertainty in connection with the current challenges facing Thistle and the U.K. and global hospitality markets in general,'' BIL Chief Executive Officer Arun Amarsi said in the statement.

Thistle shares rose 2 pence, or 1.7 percent, to 120p in London at 11:13 a.m., bringing this year's gain to 9.5 percent.

BIL offers 115p a share for Thistle
4 March 2003, This Is Money

SINGAPORE investment firm BIL International has offered 115p a share to buy out minorities in Thistle Hotels, valuing the company at nearly 555m. The deal represents a 15% premium to Thistle's closing share price of 100p, the last trading day before 46%-shareholder BIL said it was considering an offer. The shares climbed 2p to 120p.




'Our offer represents an attractive price for Thistle shareholders and provides them with the opportunity to realise in cash their investment in Thistle whilst removing the risk and uncertainty in connection with the current challenges facing Thistle and the UK and global hospitality markets in general,' said BIL chief executive Arun Amarsi. On completion, BIL said it intends to carry out a strategic, financial and operational review of Thistle.


The offer will be financed by a loan underwritten by HSBC and United Overseas Bank Ltd, BIL said. The firm has secondary listings on the London and the New Zealand Stock Exchanges.







2003 Associated Newspapers Ltd.

03/04 11:44
BIL, Thistle Hotels' Biggest Investor, Bids for Rest (Update2)
By Gabrielle Monaghan


London, March 4 (Bloomberg) -- BIL International Ltd., the biggest investor in Thistle Hotels Plc, offered to buy the rest of the U.K. hotels operator in a bid that values the company at 554.7 million pounds ($875 million).

Singapore-based BIL, owner of 46 percent of Thistle, offered 115 pence a share in cash, it said in a Regulatory News Service statement. That's 4.2 percent less than yesterday's closing price. The stock rose to 120 pence.

``The offer looks disappointing,'' said Mark Abramson, an analyst at Bear Sterns. ``This offer doesn't come near what we estimate the underlying net asset value to be.''

Thistle and rivals with luxury rooms in city centers have suffered more than cheaper hotels as sluggish economic growth deters corporate and long-haul travel. The company, which runs 24 central-London hotels, including The Royal Horseguards, yesterday posted a 42 percent decline in full-year profit.

Shares of Leeds, northern England-based Thistle added 1.7 percent at 11:35 a.m., bringing this year's gain to 9.5 percent.

The offer gives shareholders ``an opportunity to realize in cash their investment in Thistle whilst removing the risk and uncertainty in connection with the current challenges facing Thistle and the U.K. and global hospitality markets in general,'' BIL Chief Executive Officer Arun Amarsi said in the statement.

Thistle said yesterday it will decide whether to return cash to shareholders once the bid approach from BIL was concluded.

It's been urged by analysts to buy back shares after raising 600 million pounds last year through the sale of 27 hotels, including the Thistle Kensington Palace, to Orb Estates Plc. The hotelier was the subject of a takeover pursuit in November by Orb, a U.K. real-estate company.