Fairmont Announces Small Shareholder Selling

Fairmont Hotels & Resorts Inc. (“FHR”) (TSX/NYSE: FHR) today announced a small shareholder selling program (the “Program”) that enables registered and beneficial shareholders who own 99 or fewer common shares (“Shares”) of FHR as of October 1, 2002, to sell their Shares without incurring any brokerage commission. The sale of Shares will be executed through the facilities of The Toronto Stock Exchange.
The voluntary Program begins today and will expire on December 9, 2002, unless extended, and is designed to assist eligible shareholders in selling their Shares in a convenient and inexpensive manner. Both registered holders and beneficial holders of Shares held in nominee form are eligible to participate. The Program allows eligible shareholders the opportunity to either sell all, but not less than all, of their Shares or continue to maintain their current holdings. Participating shareholders will not incur any brokerage commissions if they elect to dispose of their Shares. Information about the Program and participation documents will be forwarded to eligible shareholders.

FHR is pleased to make this voluntary Program available to its shareholders. However, FHR makes no recommendation as to whether or not an eligible shareholder should participate in the Program. The decision to participate should be based upon a shareholder`s particular financial circumstances. Eligible shareholders may wish to obtain advice from their broker or financial advisor as to the advisability of participating.

FHR has retained Georgeson Shareholder Communications Canada, Inc. of Toronto, Ontario to manage the Program and to handle share transactions and payment. Questions regarding the Program should be directed to them at 1-866- 254-3086 (English) or 1-866-337-5431 (French).

FHR is one of North America`s leading owner/operators of luxury hotels and resorts. FHR`s portfolio consists of 78 luxury and first class properties with approximately 31,000 guestrooms in Canada, the United States, Mexico, Bermuda, Barbados and the United Arab Emirates. It holds an 83.5 percent controlling interest in Fairmont Hotels & Resorts (“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 35 percent investment interest in Legacy Hotels Real Estate Investment Trust, which owns 22 properties.