Fairmont Hotels & Resorts To Manage Top Safari Retreats

Fairmont Hotels & Resorts To Manage Top Safari Retreats
Joint Venture with Kingdom and IFA Hotels & Resorts Acquires Five Kenyan
Properties 


TORONTO, May 11  /PRNewswire-FirstCall/ -- Fairmont Hotels & Resorts Inc.
(TSX/NYSE: FHR), Kingdom Hotel Investments ("KHI") and IFA Hotels & Resorts
("IFA") announced today that they have entered into an agreement for Fairmont
Hotels & Resorts Inc. ("Fairmont") to manage five properties in Kenya.
Effective today, Fairmont assumed management of Nairobi's Norfolk Hotel, the
Mount Kenya Safari Club, the Aberdare Country Club, the Ark and the Mara Safari
Club. Following approximately $25 million in enhancements, all five Kenyan
properties will be renamed Fairmont hotels in mid-2006.

The five hotels were acquired today by a joint venture formed by KHI, IFA and
Fairmont. Fairmont holds an approximately 15% equity interest in the joint
venture.

"Following our recent expansion to Europe, we're delighted to introduce
Fairmont's ideal of luxury hospitality to Kenya and the safari experience,"
said William R. Fatt, Fairmont's Chief Executive Officer. "This latest
continent marks another successful milestone in Fairmont's management-focused
growth strategy, as well as an additional opportunity for our clientele to
enjoy unparalleled access to one of the world's truly exceptional wilderness
locales."

Sarmad Zok, CEO, Kingdom Hotel Investments noted, "The acquisition of this
historic portfolio represents a unique repositioning opportunity. The Fairmont
re-branding as well as a $25 million renovation program will steer this
portfolio to realizing a significant upside. We look forward to maximizing the
value of this investment with our partners. Kenya is one of the world's most
appealing adventure and wildlife tourism destinations and is currently
experiencing a strong rebound."

"IFA's mission is to provide a truly outstanding international network of
tourism opportunities to global consumers," said Jassim Al-Bahar, IFA's
Chairman. Beyond our existing presence in South Africa and Zanzibar, this
latest development is another example of our commitment to ensure superior
quality through partnering with other industry leaders."

Situated in and alongside Kenya's most famous natural attractions including the
Masai Mara plain, the Aberdare hills and Mount Kenya, the two resorts and two
nature lodges are all between one- and three-hours drive, or a short internal
flight, from Nairobi's Norfolk Hotel.

  Hotel                        Hotel Type        Year Opened          Rooms
  -------------------------------------------------------------------------
  Norfolk                 City Center - Nairobi     1904               167
  Mt. Kenya Safari Club   Destination Resort        1959               115
  Mara Safari Club        Safari Lodge              1989                50
  The Ark                 Safari Lodge              1969                60
  Aberdare Country Club   Destination Resort        1968                48


  The Norfolk Hotel


The Norfolk Hotel has been one of Nairobi's most storied gathering places since
it opened in 1904, in the pioneering days of colonial settlement, hosting
notables like American President Theodore Roosevelt, Lord Baden-Powell and
Baroness Karen Von Blixen-Finecke, better known as Out of Africa author Isak
Dinesen. Today, this 167-room hotel 30-minutes from Jomo Kenyatta International
Airport continues to provide a sophisticated respite from the bustling nearby
business district and an ideal safari departure point, complete with four
impressive dining venues, an outdoor heated swimming pool, a full-scale health
club, a ballroom and four function rooms.

Mount Kenya Safari Club

Located 190 kilometers (118 miles) north of Nairobi, the 115-room Mount Kenya
Safari Club showcases magnificent views of neighboring Mount Kenya and a
long-held reputation for secluded elegance including a variety of cottages,
suites and villas. Spread over 100 acres of landscaped grounds, the property
features a nine-hole golf course, heated swimming pool, horseback riding, bird
walks, organized trips to game reserves, fishing as well as access to an animal
orphanage. Seven restaurant and bar offerings range from casual poolside
cocktails to formal dinners accompanied by music and traditional Chukka
dancers. Originally the retreat of movie star and Club founder, William Holden,
illustrious members have included Winston Churchill, Bing Crosby and John
Wayne.

Aberdare Country Club

Described as "Scotland with lions," the unique 1,300-acre setting of the
Aberdare Country Club encompasses moorland, thick forests and clear mountain
streams. An easy three-hour transfer from Nairobi, this 1930s country hotel was
originally built on the slope of Mweiga Hill as the private farm and residence
of wealthy English landowners. The hotel's 48 accommodations are in luxurious
cottages with spectacular views of the Aberdare Mountains to the west, Mount
Kenya to the east and the plains below. Beyond a main lodge dining room with
two lounges and a well-equipped conference center, the Club offers a nine-hole
golf course, swimming pool, two tennis courts, riding stables, trout fishing
and a wildlife sanctuary that abounds with zebra, giraffe, gazelles and even
the elusive leopard.

The Ark

Built in 1969 to complement the Aberdare Club, The Ark is a tree-lodge set in
the heart of Aberdare National Park and uniquely shaped to resemble Noah's Ark.
True to its ship-like structure, it overlooks the floodlit Yasabara waterhole
and contains 60 "cabins," accommodations with en suite bathrooms. In addition
to a main dining room, lounge and bar, this one-of-a- kind safari lodge also
features three decks of balconies and a lounge with 24-hour tea and coffee
service, providing ideal vantage points for viewing game. A ground-level
"bunker" takes you close to the animals for photography and cabins are fitted
with buzzers to announce the arrival of the one of the "Big 5" at the forest
waterhole.

Mara Safari Club

The Mara Safari Club is located at the foot of the Aitong Hills, northwest of
the Masai Mara, Kenya's most popular game reserve. This expansive lodge with
dining room, lounge and pool bar is surrounded by lush gardens clustered around
indigenous trees. The 50 tented accommodations include deluxe beds, en suite
baths and other features of a top hotel. Guests can choose from a wide range of
activities, including game drives, walking safaris, bird walks, fishing and
balloon safaris over the Mara plains. A naturalist, traditional dancing and
talks on Masai culture enrich this luxurious adventure.

About Fairmont Hotels & Resorts Inc.

FHR is one of North America's leading owner/operators of luxury hotels and
resorts. FHR's managed portfolio consists of 82 luxury and first-class
properties with more than 32,000 guestrooms in the United States, Canada,
Mexico, Bermuda, Barbados, United Kingdom, Monaco and the United Arab Emirates.
FHR owns Fairmont Hotels Inc., North America's largest luxury hotel management
company, as measured by rooms under management, with 45 distinctive city center
and resort hotels such as The Fairmont San Francisco, The Fairmont Banff
Springs and The Savoy, A Fairmont Hotel. FHR also owns Delta Hotels, Canada's
largest first-class hotel management company, which manages and franchises 37
city center and resort properties in Canada. In addition to hotel management,
FHR holds real estate interests in 23 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.

About Kingdom Hotel Investments

Currently Kingdom Hotel Investments (KHI) owns 14 properties across the Middle
East and Africa. Through local partnerships, KHI controls over $2 billion of
real estate in the region. Its assets are either operational such as the Four
Seasons Cairo, Four Seasons Sharm El Sheikh, Four Seasons Amman, Movenpick
Beirut, Movenpick Bur Dubai, Movenpick El Gouna, and Movenpick Dar es-Salam, or
under completion or scheduled to open during the next 24 months such as The
Fairmont Cairo, The Fairmont Palm Hotel & Resort, the Four Seasons Damascus and
Movenpick Pearl Dubai.

KHI is the region's largest Hospitality Investment Private Equity Company
sponsored by HRH Prince Alwaleed bin Talal bin Abdulaziz Al Saud. KHI employs a
strong team of 30 professionals and carries out Construction, Acquisition,
Finance and Asset Management functions across all areas of the Hotel Industry.

About IFA Hotels & Resorts

IFA Hotels & Resorts is a subsidiary of the Kuwait-based International
Financial Advisors Company (IFA), with tourism interests spanning Europe, the
Middle East, the Indian Ocean and Africa. The company is the force behind the
management of the Sheraton Algarve Hotel and Pine Cliffs Resort in Portugal,
South Africa's exclusive Zimbali Coastal Resort and the Zanzibar Beach Hotel &
Resort on the historic Tanzanian spice island. IFA Hotels & Resorts plans link
its resorts on Dubai's The Palm, Jumeirah, and in South Africa, Zanzibar and
Portugal with planned resorts in Lebanon and Mauritius, offering tourists in
Europe, the Middle East and Africa a unique network of hotels, resorts,
timeshare and residence club destinations. 

DATASOURCE: Fairmont Hotels & Resorts Inc.



CONTACT: Fairmont Hotels & Resorts Inc.: Media, Laura Fairweather,

Executive Director Public Relations, Tel: [phone], Email:

, Website: http://www.fairmont.com/; Investors, Denise

Achonu, Executive Director Investor Relations, Tel: [phone], Email:

, Website: http://www.fairmont.com/investor; Kingdom Hotel

Investments: Sarmad Zok, Chief Executive Officer, Tel.: [phone],

Email: ; IFA Hotels & Resorts: Dubai: Bassam El

Khoury, Tel: [phone], Email: 

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