TORONTO, July 3, 2003 - In October 2002, Legacy
Hotels Real Estate Investment Trust (�Legacy�) (TSX: LGY.UN) agreed to
purchase the Four Seasons Olympic, a Five Diamond hotel in Seattle. The
purchase was subject to arbitration proceedings between the current hotel
owner and manager as well as a number of other conditions. Legacy has been
advised that a settlement has been reached today on these arbitration proceedings.
Subject to the satisfaction of customary closing conditions and third-party
approvals, Legacy will acquire the Olympic Hotel during the third quarter.
| Fairmont, the luxury hotel management
company of Fairmont Hotels & Resorts Inc. (�FHR�) (TSX/NYSE: FHR),
will operate the property, which will be officially flagged �The Fairmont
Olympic Hotel, Seattle�. Legacy has entered into an agreement with
Fairmont for a long-term management contract and Fairmont has agreed to
make a payment to Legacy to acquire this contract. The terms of the
agreement have been approved by Legacy�s Independent Trustees.
The purchase price for the property is approximately US$100 million,
or Cdn$135 million, subject to adjustments and closing costs. Legacy
expects to use mortgage financing and lines of credit to finance the purchase
of the hotel.
Commenting on the transaction, Neil J.Labatte, President and Chief Executive
Officer of Legacy, said, �We are pleased to be adding such a high-quality
heritage asset to our portfolio. This Seattle hotel is an |
| July 3, 2003 - Four Seasons Hotels Inc. (TSX Symbol "FSH";
NYSE Symbol "FS") announced today that it and the owner of Four Seasons
Olympic Hotel Seattle have settled their disagreement, which was subject
to arbitration, concerning the management of the hotel.
Under the settlement, Four Seasons will conclude its management
of Four Seasons Olympic Hotel upon sale of the hotel, which is expected
to occur on or about July 31, 2003. On closing of the sale of the hotel,
Four Seasons will receive an initial payment, which includes its share
of the sale proceeds. Four Seasons will also receive annual payments over
the next several years which are not materially different from the fees
that the Company would have otherwise earned during this period. The Company
believes the payments under the settlement agreement will, in aggregate,
compensate it for the near-term value of its management contract as it
works to obtain a new management opportunity in Seattle.
"Four Seasons Olympic Hotel Seattle was part of the Company's
initial expansion in the U.S.," said Isadore Sharp, Chairman and Chief
Executive Officer, Four Seasons Hotels and Resorts. "We have enjoyed being
part of this vibrant community ever since, as the hotel and its employees
earned a national and international reputation for excellence. We believe
that a fair and equitable settlement has been reached and look forward
to finding a new opportunity in Seattle for the Four Seasons brand."
Four Seasons Hotels and Resorts
Douglas L. Ludwig, Chief Financial Officer and Executive
Vice President, (416) 441-4320 |
|
exceptional property in an important market and represents the qualities
we seek for our portfolio of luxury hotels.� Added Mr. Labatte, �This irreplaceable
property is a natural complement to Legacy�s strong Fairmont presence in
both Vancouver and Victoria, British Columbia.�
 About
the Olympic Hotel
Built in 1924 and located in the heart of Seattle's fashionable Rainier
Square neighborhood, this 450-room property, including 209 suites, blends
classic ambience with state-of-the-art amenities. Minutes away from the
city's arts & entertainment districts, the AAA Five Diamond hotel features
two restaurants and two lounges, a fully equipped fitness center with indoor
pool, high-speed Internet access in all guestrooms and 20,000 square feet
of versatile meeting and function space.
About Legacy Hotels Real Estate Investment Trust
Legacy is Canada's premier hotel real estate investment trust with
22 luxury and first-class hotels in Canada and one in the United States,
consisting of over 10,000 guestrooms. The portfolio includes landmark properties
such as Fairmont Le Château Frontenac, The Fairmont Royal York, The
Fairmont Empress and The Fairmont Washington, D.C. |
