Fairmont To Manage Sutton Place Hotel Newport Beach

Fairmont To Manage Sutton Place Hotel Newport Beach
- Sunstone Hotel Investors, Inc. To Acquire Hotel - 


TORONTO, April 20  /PRNewswire-FirstCall/ -- Fairmont Hotels & Resorts Inc.
(TSX/NYSE: FHR) and Sunstone Hotel Investors, Inc. (NYSE:SHO) announced today
that they have entered into an agreement for Fairmont Hotels & Resorts
("Fairmont") to manage the 444-room Sutton Place Hotel in Newport Beach,
California. Sunstone is currently under contract to purchase the property with
closing currently scheduled for mid-May. Sunstone will then commence a major
renovation of the hotel's guestrooms and public areas, anticipated to cost
approximately $22.0 million. Upon completion, expected to occur in early 2006,
the hotel will be re-named The Fairmont Newport Beach.

"Fairmont is pleased about this opportunity to establish a relationship with
Sunstone, a well-known hotel owner," said William R. Fatt, FHR's Chief
Executive Officer. "We look forward to working with our new partner to further
strengthen the quality and performance of this property that is located in an
active center for commerce and tourism."

Robert A. Alter, Sunstone's Chief Executive Officer, stated, "The Sutton Place
represents an excellent opportunity to renovate and reposition an
underperforming property back into one of Orange County's premier luxury
business hotels. The property will benefit from Fairmont's luxury brand
profile, strong presence in the California market and global distribution
network. We look forward to developing this partnership with Fairmont."

About Sutton Place Hotel Newport Beach

Located near John Wayne Orange County Airport and five miles from the beach,
the hotel is situated in the center of Orange County's commercial business
center. A third floor outdoor sky pool, tennis courts and three restaurants
cater to leisure needs while nearby South Coast Plaza, the theme parks of
Anaheim and the beaches of Newport Beach provide a full range of diversions,
from shopping and sunbathing to professional sports.

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 83 luxury and first-class
properties with more than 33,000 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 46 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 Sunstone Hotel Investors, Inc.

Sunstone Hotel Investors, Inc. is a Southern California-based lodging real
estate investment trust (REIT). The Company currently owns 52 hotels primarily
in the upper-upscale and upscale segments operated under franchises owned by
nationally recognized brands, such as Marriott, Hilton, InterContinental, Hyatt
and Fairmont. For further information, please visit the Company's website at
http://www.sunstonehotels.com/. 

DATASOURCE: Fairmont Hotels & Resorts Inc.



CONTACT: 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

Copyright