Fairmont To Manage Turnberry Isle

Fairmont Hotels & Resorts Inc. (“FHR”)(TSX/NYSE: FHR) today announced that
it has entered into an agreement to manage Florida`s renowned Turnberry
Isle Resort & Club. With the closing of the transaction today, FHR has
entered into a long-term management agreement with New York- based Macro
Capital Limited to manage the resort under FHR`s luxury Fairmont brand as
of January 1, 2004. The property will be flagged “The Fairmont Turnberry
Isle Resort & Club, Miami, Florida” on January 30, 2004.

“Fairmont has a strong presence in the North American resort market and we
have been actively seeking strategic growth opportunities to expand this
portfolio. Finding the right property in south Florida has been a top
priority given this destination`s strength in the group meetings market,
which is a critical business segment for Fairmont,” said William R. Fatt,
FHR`s Chief Executive Officer.

Continued Mr. Fatt, “With its 25,000 square foot spa, extensive meeting
facilities and two signature championship golf courses, Turnberry Isle
Resort & Club is a perfect fit with our current resort portfolio and
provides the brand with a strong presence in the Florida market. We look
forward to working with our partner to further strengthen the quality and
performance of the property.”

This 300-acre Mediterranean-style resort is located in Florida`s exclusive
enclave of Aventura, within 30 minutes of the Miami International Airport
and 20 minutes from Ft. Lauderdale. Turnberry Isle Resort & Club offers
392 guestrooms and nine restaurants and lounges, including award- winning
“The Veranda”, recognized by the Zagat Guide as “Miami`s Best Gourmet
Dining Experience”. The resort features a 25,000 square foot spa opened in
2001, 45,000 square feet of conference and banquet facilities, and
extensive on-site golf and tennis facilities, including two signature
18-hole championship golf courses designed by world famous golf course
architect, Robert Trent Jones, Sr. In addition, guests and club members
have access to the private Ocean Club on the shores of the Atlantic Ocean,
and a full service marina, located on the Intracoastal Waterway.

FHR is one of North America`s leading owner/operators of luxury hotels and
resorts. FHR`s managed portfolio consists of 82 luxury and first-class
properties with more than 32,000 guestrooms in Canada, the United States,
Mexico, Bermuda, Barbados and the United Arab Emirates. It holds an 83.5%
controlling interest in Fairmont Hotels & Resorts (“Fairmont”), North
America`s largest luxury hotel management company, as measured by rooms
under management. Fairmont manages 42 distinctive city center and resort
hotels such as The Fairmont San Francisco, The Fairmont Banff Springs,
Fairmont Le Chateau Frontenac and The Fairmont Scottsdale Princess. FHR
also holds a 100% interest in Delta Hotels, Canada`s largest first-class
hotel management company, which manages and franchises a portfolio of 39
city center and resort properties in Canada. In addition to hotel
management, FHR holds real estate interests in 24 properties, two large
undeveloped land blocks and an approximate 35% investment interest in
Legacy Hotels Real Estate Investment Trust, which owns 24 properties.