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Legacy Hotels Real Estate Investment Trust Announcement

Press Release: Legacy Hotels Real Estate Investment Trust
April 29, 2004
TORONTO -- Legacy Hotels Real Estate Investment Trust ("Legacy" or the "Trust") (TSX: LGY.UN) yesterday announced that Fairmont Hotels & Resorts Inc. ("FHR" or the "Company") (NYSE/TSX: FHR) has advised the Trust that it may, subject to favourable market conditions, reduce its Legacy investment during 2004, pursuant to one or several transactions. FHR is Legacy's largest unitholder with an approximate 35% equity interest in the Trust.

Yesterday, in FHR's first quarter 2004 earnings release, the Company discussed its investment in Legacy:

	    "In 1997, FHR was instrumental in the creation of Legacy. Since that
	    time, the Company has held an approximate one-third interest in the
	    equity of the Trust and Legacy and the Company have had a mutually
	    beneficial strategic relationship during which time Legacy has acquired
	    15 hotels from FHR from inception until 2001 and is currently the largest
	    third party owner of Fairmont properties.

	    To date, FHR has accounted for its investment in Legacy on an equity
	    basis. Pursuant to recent changes in accounting rules that came into
	    effect in 2004 under U.S. GAAP and which will come into effect in 2005
	    under Canadian GAAP, FHR will likely be required to consolidate within
	    its financial statements Legacy's financial results. FHR believes that
	    consolidating Legacy would complicate investors' ability to assess FHR's
	    financial performance. Based on the Company's analysis to date, were FHR
	    to reduce its equity investment in Legacy to less than 25%, the Company
	    could continue to equity account for its Legacy holding without
	    consolidation.

	    Accordingly, FHR may, subject to favourable market conditions, reduce its
	    investment in the Trust during 2004, pursuant to one or several
	    transactions. FHR believes that the mutual benefits of their relationship
	    would remain substantially unchanged notwithstanding a reduction in its
	    equity interest."

Commenting on the announcement, Neil J. Labatte, Legacy's President and Chief Executive Officer said, "As the largest owner of Fairmont and Delta properties, we also believe that the mutually beneficial relationship between ourselves and FHR will continue regardless of a reduction in FHR's equity position in the Trust." Added Mr. Labatte, "It is my objective to continue to add internal management capabilities to Legacy, as appropriate, while continuing to take advantage of the expertise provided by FHR through the existing Advisory agreement."
About Legacy Hotels Real Estate Investment Trust

Legacy is Canada's premier hotel real estate investment trust with 24 luxury and first-class hotels and resorts with over 10,000 guestrooms located in Canada and the United States. The portfolio includes landmark properties such as Fairmont Le Château Frontenac, The Fairmont Royal York, The Fairmont Empress and The Fairmont Olympic Hotel, Seattle.

For further information

Chantal Nappert, Investor Relations, Tel: (416) 874-2765, Email: investor@legacyhotels.ca, Website: www.legacyhotels.ca

Source: Legacy Hotels Real Estate Investment Trust