Fairmont Hotels & Resorts Inc. (“FHR”) (TSX/NYSE: FHR) today 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 today 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 will host a conference call today at 5:00 p.m. Eastern Time to discuss this announcement. FHR shareholders are welcome to access the call. Please dial (416) 620-2400 or 1-877-871-4052 to access the call. You will be required to identify yourself and the organization on whose behalf you are participating. 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.
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.
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.
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.