CAIRO, EGYPT - Alcohol is once again being served at Egypt's five-star Grand Hyatt hotel after a weeks-long ban in the name of Islam that was imposed by its owner, a hotel spokeswoman said on Monday.

But alcohol will be served only at a bar on the top floor after a compromise between US chain Hyatt and owner Abdel Aziz Ibrahim, Sally Khatab told AFP.

In May Sheikh Ibrahim, a member of the Saudi royal family, poured some 2,500 bottles of alcohol worth 300,000 dollars down the drain after unilaterally deciding to ban booze in the establishment.

The authorities, highly protective of Egypt's tourism industry, then threatened to downgrade the Grand Hyatt's rating to two stars in line with national tourism guidelines.

After a weeks-long standoff both parties agreed to a compromise whereby alcohol is served at the hotel's 41st floor rotating restaurant, Khatab said.

Booze remains banned at the hotel's other 11 restaurants as well as in the 716 minibars in rooms and suites, although it can be ordered via room service.