Fairmont Completes Southtown Land Sale

TORONTO, Dec. 23  /PRNewswire-FirstCall/ -- Fairmont Hotels & Resorts Inc. ("Fairmont" or the "Company") (TSX/NYSE: FHR) today announced that it has completed the sale of land in Toronto's Southtown to Menkes Union Tower Inc. Fairmont received gross proceeds of Cdn$30.5 million, resulting in a gain of approximately Cdn$8.2 million. This gain was not included in our full-year earnings guidance. It will impact 2005 EBITDA but will not change Fairmont's 2005 Adjusted EBITDA guidance.

As part of its ongoing strategy, Fairmont continues to pursue sale opportunities for the remaining land blocks in downtown Toronto. The Company has recently entered into separate agreements to sell additional blocks of Southtown land. The sales are expected to close in the next several quarters.

About Fairmont Hotels & Resorts Inc.

FHR is a leading owner/operator of luxury hotels and resorts. FHR's managed portfolio consists of 88 luxury and first-class properties with approximately 34,000 guestrooms in the United States, Canada, Mexico, Bermuda, Barbados, United Kingdom, Monaco, Kenya and the United Arab Emirates as well as two vacation ownership properties managed by Fairmont Heritage Place. FHR owns Fairmont Hotels Inc., North America's largest luxury hotel management company, as measured by rooms under management, with 50 distinctive city center and resort hotels including The Fairmont San Francisco, The Fairmont Banff Springs and The Fairmont Scottsdale Princess. FHR also owns Delta Hotels, Canada's largest first-class hotel management company, which manages and franchises 38 city center and resort properties in Canada. In addition to hotel management, FHR holds real estate interests in 27 properties and an approximate 24% investment interest in Legacy Hotels Real Estate Investment Trust, which owns 24 properties. FHR owns FHP Management Company LLC, a private residence club management company that operates Fairmont Heritage Place, a vacation ownership business. 

DATASOURCE: Fairmont Hotels & Resorts Inc.



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