Staff price themselves out of 2000 party

British hotel operator Hanover International plans to close its six hotels at New Year's after deciding millennium staff and entertainment costs would outweigh the benefits of opening.

Chief executive Peter Eyles took the decision on the basis that levels of service would also be difficult to guarantee.

"I don't think much money will be made by hotels," he said. "The cost of hiring entertainment has gone through the roof and any staff willing to work will charge a king's ransom."

As if that was not problem enough, Mr Eyles added there was also no certainty about what the impact of the millennium computer bug would be, even though the hotel has spent £250,000 sterling to make their systems compliant at its hotels in six English towns. So much for a Happy New Year . . .