Fairmont, Kingdom And Bank Of Scotland Launch European-Focused Joint Venture

Fairmont, Kingdom And Bank Of Scotland Launch European-Focused
Joint Venture
- Monte Carlo Grand Hotel is First Acquisition for New Joint Venture - 


TORONTO, Dec. 22  /PRNewswire-FirstCall/ -- Fairmont Hotels & Resorts Inc.
(Fairmont) (TSX/NYSE: FHR), Kingdom Hotels International (Kingdom) and Bank of
Scotland Corporate, a division of HBOS plc announced today that they have
formed a joint venture to invest in luxury hotels in key European markets.

The joint venture will have a potential buying capacity of pnds stlg 800
million (US$1.5 billion) and will be equity funded 50% by Bank of Scotland, 25%
by Fairmont and 25% by Kingdom. The partners anticipate making equity
contributions of up to pnds stlg 200 million (US$390 million). The hotels
acquired by the joint venture will be managed by Fairmont and Bank of Scotland
will provide debt financing for the joint venture. Cedar Capital Partners will
serve as managers and investment advisors for the joint venture.

The joint venture's first investment is the purchase of the Monte Carlo Grand
hotel in Monaco, a 619-room landmark property on one of the most coveted
stretches of the Cote d'Azur. The purchase of the hotel by the joint venture
has been completed and the property will be flagged "The Fairmont Monte Carlo"
in March 2005. The new owners expect to invest US$50 million in refurbishment.

"We are delighted to extend our relationship with Kingdom and Bank of Scotland
through this joint venture," said William R. Fatt, CEO Fairmont Hotels &
Resorts. "Coming on the heels of our agreement to manage London's Savoy Hotel
on completion of sale, this agreement marks another important milestone in the
global expansion of the Fairmont brand and adds Monte Carlo to our list of
world renowned Fairmont hotel destinations."

"As a long-term investor in Fairmont and Fairmont hotel properties, we believe
our joint venture's focus on European luxury hotel acquisitions is an excellent
strategic choice for growth," said HRH Prince Alwaleed bin Talal bin AbdulAziz
Alsaud, Chairman of Kingdom.

Peter Cummings, Managing Director Bank of Scotland Corporate added, "We are
very confident in the expertise and capacity of our joint venture partners to
command a strong presence in Europe and develop the properties acquired to the
very highest standards of quality and financial performance."

About the Monte Carlo Grand Hotel

Designed to echo the sleek elegance of an ocean liner and architecturally avant
garde since it opened in 1975, this modern palace hotel hugs the coastline
directly below the famous casino. One of Europe's best-known and largest
convention resorts, the Monte Carlo Grand contains 32,300 feet of premium
function space along with five restaurants and bars, a spa, an outdoor pool
with sea views and a newly renovated Fitness Center. The hotel's 619 rooms
offer expansive views of the principality and the Mediterranean.

About Fairmont Hotels & Resorts Inc. (Fairmont)

Fairmont is one of North America's leading owner/operators of luxury hotels and
resorts. Fairmont's managed portfolio consists of 81 luxury and first-class
properties with approximately 33,000 guestrooms in the United States, Canada,
Mexico, Bermuda, Barbados and the United Arab Emirates. Fairmont owns Fairmont
Hotels Inc., North America's largest luxury hotel management company, as
measured by rooms under management, with 44 distinctive city center and resort
hotels such as The Fairmont San Francisco, The Fairmont Banff Springs and The
Fairmont Scottsdale Princess. Fairmont 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,
Fairmont holds real estate interests in 22 properties and an approximate 24%
investment interest in Legacy Hotels Real Estate Investment Trust, which owns
24 properties.

About Kingdom

Kingdom is owned by a trust for the benefit of HRH Prince Alwaleed bin Talal
bin AbdulAziz Alsaud and his family. Prince Alwaleed, directly or through
trusts and other entities for the benefit of himself and his family, has made
substantial investments in multiple sectors including banking, hotels, media,
telecommunications, technology, construction and real estate, entertainment,
and upscale fashion, among numerous others. Significant hotel- related
investments include interests in Fairmont Hotels & Resorts, Four Seasons Hotels
& Resorts, the George V Hotel and Movenpick Hotels & Resorts, covering more
than 260 hotels throughout the US, the Middle East and Africa. Significant
investments in other sectors include interests in Citigroup, News Corp., Time
Warner, Motorola, Apple Computers, Ballast Nedam, Canary Wharf, Disneyland
Paris, Saks Inc. and Kingdom Center.

About Bank of Scotland Corporate

Bank of Scotland Corporate is part of leading UK financial services group, HBOS
plc. It has a reputation for excellence in the provision of corporate finance,
delivering innovative funding solutions across a range of markets. The Bank has
established a strong record in funding Joint Ventures. Since setting up its
Joint Ventures team in 2000, it has provided total funding of over pnds stlg 10
billion across more than 130 investments. Typically, the Bank invests in
vertical (integrated) funding opportunities (i.e. debt plus equity) and weighty
equity stakes (typically 25-50%) with the Bank being pro-active in driving
value.

About Cedar Capital Partners

Cedar Capital Partners is a specialist hotel investment firm that invests and
asset manages equity capital on behalf of institutions and high net worth
individuals on a global basis. The firm was founded by Ramsey Mankarious and is
comprised of industry professionals with backgrounds in hotel finance,
operation, acquisition and development. 

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

, Website: http://www.fairmont.com/investor; Bank of

Scotland Corporate, Mark Elliott, Head of Media Relations, Tel:

44.131.243.5572, Email: , Website:

http://www.hbosplc.com/media/home.asp; Kingdom, Charles S. Henry, President,

Hotel Capital Advisers, Inc., Tel: [phone], Email:

; Cedar Capital Partners, Ramsey N. Mankarious, Chief

Executive Officer, Tel: [phone], E-mail: ,

Website: http://www.cedarcp.com/

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