TORONTO, October 31, 2000 -- Legacy Hotels Real Estate Investment Trust
(�Legacy�) announced today that it plans to acquire Le Château Frontenac
and The Empress hotels from Canadian Pacific Hotels & Resorts Inc.
(�CPH&R�) for an aggregate purchase price of $305 million. The hotels
are two of Canada�s premier resort properties located in the cultural centre
of their respective cities. Fairmont Hotels & Resorts (�Fairmont�),
North America�s largest luxury hotel management company, manages Le Château
Frontenac and The Empress. CPH&R holds a 67% controlling interest
in Fairmont.
| The Empress is Victoria, British Columbia�s premier
hotel property. Built in 1908, the 472-room hotel overlooks Victoria�s
inner harbour and is adjacent to the Conference Centre. Plans are underway
for the creation of a full service luxury spa to open in 2001. Built
in 1893, Le Château Frontenac is located in the heart of historic
Quebec City within the only walled city in North America. Reputed as the
most photographed hotel in the world, this 607-room hotel overlooks the
St. Lawrence River and is recognized as a Quebec landmark.
The purchase price for the hotels is $185 million for Le Château
Frontenac and $120 million for The Empress. The hotels will be acquired
by a subsidiary of Legacy, which will issue exchangeable shares to CPH&R
for approximately $120 million of the aggregate purchase. The exchangeable
shares are exchangeable into Legacy units on a one-for-one basis.
The number of exchangeable shares will be based on |
The Empress
Victoria, British Columbia
Le Château Frontenac
Quebec City, Quebec
|
|
the market price of Legacy�s units at the time of the unitholder meeting
referred to below, subject to a minimum of $8.60 and a maximum of $9.00
per unit. The dividend on the exchangeable shares will be equivalent
to the after-tax distributions paid on Legacy units. The balance of the
purchase price will be paid in cash and will be funded from the net proceeds
of secured, non-recourse loans.
The closing of the acquisition is expected to take place in December
2000 and is subject to several conditions, including unitholder approval
of the acquisition and the necessary amendments to the Legacy Declaration
of Trust to effect the transaction.
�Legacy believes that the resort sector has significant growth prospects,�
said Neil Labatte, President and Chief Operating Officer of Legacy.
�These two hotels provide Legacy with several benefits, including expansion
into the resort sector, a more diversified revenue base, high quality assets
that will enhance Legacy's current portfolio and an investment in major
cities where Legacy does not have a presence.� Fairmont will continue
to manage both The Empress and Le Château Frontenac under existing
long term management agreements.
William Fatt, Chairman and Chief Executive Officer of CPH&R stated
that �Canadian Pacific Hotels has owned these historic landmark hotels
since they were built. This sale is consistent with CPH&R�s objective
of realizing value from its hotel properties while retaining long-term
hotel management contacts.� Mr. Fatt went on to say, �The exchangeable
shares to be issued to CPH&R will increase its holding in Legacy beyond
the current 34%. We intend to pursue a secondary offering of Legacy
units to reduce CPH&R�s interest to current levels.�
Legacy will hold a Special Meeting of Unitholders on December 4, 2000
to seek approval for the purchase of the two hotels and related matters.
A management proxy circular containing full details of this transaction
will be mailed to unitholders in approximately two weeks.
Legacy�s current portfolio consists of 19 luxury and first class hotels
from coast to coast in Canada with 8,500 rooms. Fairmont manages
the eight luxury hotels and Delta Hotels manages the 11 first class properties.
Legacy�s Units trade on The Toronto Stock Exchange under the trading symbol
�LGY.UN�.
Legacy Hotels Real
Estate Investment Trust
Schedule of Occupancies
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Three months ended
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Nine months ended
|
| Property |
2000 |
1999 |
2000 |
1999 |
| Hotel Vancouver |
79.9 |
88.3 |
73.4 |
79.9 |
| The Waterfront |
88.8 |
91.8 |
77.2 |
80.7 |
| The Palliser |
79.9 |
85.6 |
65.6 |
74.0 |
| Hotel Macdonald |
65.9 |
80.9 |
65.2 |
72.8 |
| Royal York |
80.2 |
87.8 |
74.5 |
79.5 |
| Château Laurier |
84.4 |
87.9 |
79.5 |
82.1 |
| The Queen Elizabeth |
86.6 |
85.1 |
69.4 |
71.7 |
| FAIRMONT MANAGED |
82.3 |
87.2 |
72.7 |
77.4 |
| Delta Calgary Airport |
70.6 |
72.3 |
64.7 |
64.5 |
| Delta Beauséjour |
71.2 |
79.5 |
69.8 |
72.9 |
| Delta Halifax |
90.1 |
92.0 |
73.8 |
71.2 |
| Delta Prince Edward |
86.0 |
90.1 |
58.5 |
62.0 |
| Delta Bessborough |
70.0 |
69.9 |
71.6 |
62.1 |
| Delta Centre-Ville |
81.8 |
80.1 |
66.9 |
71.4 |
| Delta Ottawa Hotel & Suites |
84.3 |
89.5 |
82.5 |
84.1 |
| Delta Barrington |
89.8 |
93.8 |
68.0 |
84.2 |
| Delta Toronto East |
78.4 |
78.2 |
67.5 |
71.9 |
| FourPoints Hotel Toronto Airport |
86.6 |
81.7 |
84.6 |
82.6 |
| Delta Winnipeg |
73.7 |
82.4 |
67.8 |
84.6 |
| DELTA MANAGED |
79.9 |
82.2 |
70.4 |
74.1 |
| TOTAL HOTEL PORTFOLIO |
81.3 |
84.9 |
71.7 |
75.9 |
|
