TORONTO— Fairmont Hotels & Resorts reported its unaudited financial results for the three months and the year ended December 31, 2001. Fairmont expects to release its 2001 annual report in early March. Fairmont’s financial results for the year contain substantial non-recurring items related to the reorganization of Canadian Pacific Limited (CPL), including the operating results of CPLs four discontinued businesses, reorganization expenses, and CPL corporate expenses. Typically, the fourth quarter is Fairmont’s weakest quarter and the 2001 quarter was even futher impacted by the events of Sept. 11. Revenues of $100.8 million in the fourth quarter of 2001 were down 12.7% from $115.4 million in the same quarter of 2000. EBITDA of $14.6 million decreased 54.1% from $31.8 million in the fourth quarter of 2000. Declines were experienced in both FHRs hotel ownership and hotel management operations resulting from lower occupancies and the difficulty of meeting incentive fee targets due to the extraordinary events in late 2001. Additions to the portfolio included The Fairmont Kea Lani Maui, the remaining 51% interests in The Fairmont Glitter Bay and The Fairmont Royal Pavilion in Barbados in early 2001, and the remaining 80% interest in The Fairmont Chateau Whistler late in 2000. In February 2001, Fairmont sold The Fairmont Empress in Victoria and Fairmont Le Chateau Frontenac in Quebec City to Legacy Hotels Real Estate Investment Trust. Income from continuing operations was $49.6 million compared to a loss from continuing operations of $12.1 million in the same quarter of 2000. RevPAR for owned comparable hotels in the fourth quarter 2001 was $78.75, down 17% from $94.92 in 2000. The decline resulted from a combination of a 7.9% decrease in occupancy and a 3.5% decrease in ADR. Yean-end 2001 results saw revenues increase 2.2% to $542.6 million from $530.8 million in 2000. EBITDA of $165.2 million was down 15.5% from $195.4 million the prior year. Fairmont incurred a loss from continuing operations of $28.2 million compared to income from continuing operations of $52.4 million in 2000. RevPAR for owned comparable hotels for the year-end 2001 was $114.14 in 2001, down 3.2% from $117.91 in 2000. The decline resulted from a combination of a 3% decrease in occupancy and a 1.6% increase in ADR.
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