Fairmont Hotels & Resorts Inc. (“FHR”)(TSX/NYSE: FHR) today announced the closing of the previously announced transaction with a subsidiary of Kingdom Hotels (USA), Ltd. (“Kingdom”), an affiliate of a trust created by Prince Alwaleed Bin Talal Bin Abdulaziz Al Saud, to exchange its 16.5% interest in Fairmont Hotels Inc. (“FHI”), the Fairmont management company, for shares of the public company FHR. As a result of this transaction, FHR issued 2,875,000 shares to Kingdom, equivalent to approximately 3.7% of FHR`s issued and outstanding shares. FHR`s interest in FHI has now increased to 83.5% from 67%. A partnership managed by Maritz, Wolff & Co. will continue to hold the balance of 16.5%.
Commenting on the closing, Prince Alwaleed, president of Kingdom, said, “We are pleased with this transaction as it provides us with a broader exposure to all of FHR`s assets, not only the management business. Kingdom intends to be a long-term investor and we look forward to our continued relationship with FHR.”
William R. Fatt, chief executive officer of FHR, commented, “We value our relationship with Kingdom as a hotel real estate owner and now as a long-term shareholder in FHR. This transaction provides us with greater investment in FHI, where we anticipate significant growth over the next few years.”