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Press Release: Fairmont Hotels & Resorts Inc.
October 18, 2002
TORONTO -- Fairmont Hotels & Resorts Inc. ("FHR") (TSX/NYSE: FHR) yesterday announced that it will
assume management of the Monarch Hotel in Washington, D.C., bringing Fairmont's luxury collection to 40 properties
in six countries. The hotel will be officially flagged "The Fairmont Washington, D.C." in November 2002.
Legacy Hotels Real Estate Investment Trust ("Legacy") (TSX: LGY.UN) announced yesterday that it has agreed
to acquire the hotel for a purchase price of approximately US$145 million plus closing costs. The transaction is
expected to close in early November, subject to certain conditions.
Commenting on the announcement, William R. Fatt, chief executive officer of FHR, said, "Washington, D.C. is
a strategic market for us, with highly favorable demographics and limited supply growth, and has been a top priority
for expanding the brand. With its recently renovated guestrooms, extensive meeting space and prominent Georgetown
location, the Monarch Hotel will be an excellent complement to Fairmont's luxury collection."
Through their ongoing strategic relationship, FHR and Legacy will work together to reposition the Monarch Hotel
as a Fairmont-quality asset, further strengthening its position within the Washington market. Current plans include
the conversion of certain guestrooms into Fairmont Gold, Fairmont's "hotel within a hotel" product, featuring
private check-in, exclusive concierge services and other amenities. This will be Fairmont's first Fairmont Gold
product in the United States.
Legacy hosted a conference call yesterday at 5:00 p.m. Eastern Time to discuss this announcement. A recording of
this call will be made available beginning at 7:00 p.m. on October 17, 2002 through to 7:00 p.m. on October 24,
2002. To access the recording please dial 1-800-633-8625 and use the reservation number 20986677.
A live audio webcast of the conference call will be available via FHR's website (www.fairmont.com/investor).
An archived recording of the webcast will remain available on this website following the conference call.
About Monarch Hotel
Built in 1985, the 415-room Monarch Hotel is located in Washington's West End on the edge of picturesque Georgetown
and is considered one of the city's premier luxury properties. The Monarch Hotel is close to Washington's finest
museums, theaters (including the Kennedy Center), shopping and dining. The hotel has the amenities and services
expected of a luxury property in a major downtown city: extensive function space with 18 meeting rooms totaling
more than 29,000 square feet, a 17,500 square foot fitness center and award-winning dining. Between 1999 and 2000,
the majority of the Monarch Hotel's guestrooms and meeting space were renovated.
About Fairmont Hotels & Resorts Inc.
FHR is one of North America's leading owner/operators of luxury hotels and resorts. FHR's current portfolio consists
of 78 luxury and first class properties with more than 30,000 guestrooms in Canada, the United States, Mexico,
Bermuda, Barbados and the United Arab Emirates. It holds an 83.5 percent controlling interest in Fairmont, North
America's largest luxury hotel management company. Fairmont manages 39 distinctive city center and resort hotels
such as The Fairmont San Francisco, The Fairmont Banff Springs, Fairmont Le Chateau Frontenac, The Fairmont Scottsdale
Princess and The Plaza in New York City. FHR also holds a 100 percent interest in Delta Hotels, Canada's largest
first class hotel management company, which manages and franchises a portfolio of 38 city center and resort properties
in Canada. In addition to hotel management, FHR holds real estate interests in 22 properties, two large undeveloped
land blocks and an approximate 36 percent investment interest in Legacy Hotels Real Estate Investment Trust, which
owns 22 properties.
About Legacy Hotels Real Estate Investment Trust
Legacy is Canada's premier hotel real estate investment trust with 22 luxury and first class hotels across Canada
with approximately 10,000 guestrooms. The portfolio includes landmark properties such as Fairmont Le Chateau Frontenac,
The Fairmont Royal York and The Fairmont Empress. The management companies of FHR operate all of Legacy's properties.
Source: Fairmont Hotels & Resorts Inc.