Fairmont Closes Exchange Transaction

TORONTO— Fairmont Hotels & Resorts Inc. closed a transaction with a subsidiary of Kingdom Hotels (USA), Ltd., an affiliate of a trust created by Prince Alwaleed Bin Talal Bin Abdulaziz Al Saud, to exchange its 16.5% interest in Fairmont Hotels Inc., the Fairmont management company, for shares of the public company FHR. As a result of this transaction, FHR issued 2,875,000 shares to Kingdom, equivalent to approximately 3.7% of FHRs issued and outstanding shares. FHRs interest in FHI has now increased to 83.5% from 67%. A partnership managed by Maritz, Wolff & Co. will continue to hold the balance of 16.5%. William Fatt, CEO/FHR, said, “We value our relationship with Kingdom as a hotel real estate owner and now as a long-term shareholder in FHR. This transaction provides us with greater investment in FHI, where we anticipate significant growth over the next few years.” FHRs portfolio consists of 78 luxury and first-class properties representing approximately 31,000 rooms in Canada, the United States, Mexico, Bermuda, Barbados and the United Arab Emirates. It holds an 83.5% controlling interest in management company FHI, which manages 39 city center and resort hotels such as The Fairmont San Francisco, The Fairmont Scottsdale Princess and The Plaza in New York City. FHR also holds a 100% interest in Delta Hotels, which manages and franchises a portfolio of 38 city center and resort properties in Canada. In addition to hotel management, FHR holds real estate interests in 22 properties, two large undeveloped land blocks and an approximate 35% investment interest in Legacy Hotels Real Estate Investment Trust, which owns 22 properties.