Thistle results point to market slide

Thistle Hotels' interim results, which showed profits below predicted levels, have prompted analysts to forecast a decline in the London hotel market.

Bruce Jones, analyst at Thistle's house broker, Merrill Lynch, said: "There is no doubt that the London market will slow down by 1998, owing to the cyclical economy and the strength of the pound."

Shares in the group sank 19p to 132.5p in response to the figures which, despite a 58% rise in pre-tax profits to £38.1m, fell short of the predicted £40m.

Refurbishment costs had contributed to the shortfall. Work at the Royal Horseguards and Charles Dickens hotels in London has alone cost £1.36m.

Thistle's London bookings had been significantly affected by the strength of the pound.