Fairmont plan of arrangement is completed

16th May 2006

Fairmont have announced that the previously announced Plan of Arrangement has been completed and all of Fairmont’s outstanding common shares have been acquired by a company owned by affiliates of Kingdom Hotels International and Colony Capital.Under the terms of the Plan of Arrangement, the Company’s shareholders will receive US$45.00 in cash for each Fairmont common share held. With the completion of the transaction, the Fairmont and Raffles’ portfolios will now be combined, transforming the companies into a global hotel leader headquartered in Toronto, with 120 hotels in 23 countries under four brands (Fairmont, Raffles, Swiss™tel and Delta).

“We are very excited about this transaction as it creates an expanded foundation from which to build on our legacy, grow our brand and create significant opportunities for our employees. With an expanding global portfolio of exceptional resorts and gateway city properties, our guests will be exposed to new, exciting destinations with different cultures,” said William R. Fatt, Fairmont’s Chief Executive Officer. “We look forward to working with our partners who are committed to building on the success of our Company.”

HRH Prince Alwaleed bin Talal bin Abdulaziz Alsaud of Kingdom said, “As a long time investor in Fairmont, Kingdom has recognized the Company’s value and potential, which is attributable to the dedication and professionalism of its management and employees. We look forward to working with Colony to build on the success of these brands and to further expand this irreplaceable collection of properties around the world.”

“Our partnership with HRH Prince Alwaleed in this global hotel company fulfils our mission to invest with world class partners in irreplaceable assets with proven management teams,” commented Thomas J. Barrack, Jr., Chairman and Chief Executive Officer of Colony. “Fairmont and Raffles are an excellent strategic fit with rich histories, creating a brand-focused company with an expansive global footprint that is dedicated to serve as the destination of choice for the world’s most discriminating travellers.”




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