|TORONTO, Nov. 16, 2005 - Fairmont Hotels & Resorts Inc. (TSX/NYSE:
FHR) has reached another milestone in its growth strategy with the introduction
of its first urban private residence club. In a new partnership with JMA
Ventures, LLC ("JMA"), Fairmont Heritage Place will develop San Francisco's
first private residence club in San Francisco's historic Ghirardelli Square.
Located in the original chocolate factories, this luxury residence club
will offer extraordinary views of the San Francisco Bay and Alcatraz Island
as well as an intimate European plaza feel. As part of the agreement with
JMA, Fairmont will make a minority equity investment in the development
and JMA, along with its investment partner Pacific Coast Capital Partners
of San Francisco, will hold the balance. Fairmont Heritage Place will begin
marketing and sales efforts next summer with the residence club homes scheduled
to open in mid-2007.
"This is a unique opportunity for Fairmont to create what we believe
will be the preeminent urban private residence club. This is an excellent
strategic choice for our company, a strong fit for our brand and an important
milestone in the growth of our Fairmont Heritage Place collection," said
William R. Fatt, Fairmont's Chief Executive Officer. "We are excited about
our new relationship with JMA, and hope that this project will be the first
of many development opportunities with our new partner."
"Fairmont Heritage Place's strategy is to be the definitive location
in each of its destinations with a luxury residence club product that is
both contemporary and local. Ghirardelli Square, with its historic significance
and spectacular location, represents the quintessential Fairmont Heritage
Place," commented Greg Doman, Fairmont's Vice President, Fairmont Heritage
Place. "We believe the high caliber and outstanding location of this development
will set new standards for urban private residence clubs."
"Our goal was to seek a partner that would provide a premium hospitality
brand identity and a top-quality product commensurate with our vision for
a revitalized Ghirardelli Square," said Todd Chapman of JMA. "Ghirardelli
is a very special place -- a beloved and historic San Francisco icon, a
uniquely intimate physical space, and one of the most beautiful locations
in the city. Our vision for renewing and reenergizing Ghirardelli Square
-- which includes an exciting mix of high-end retail, fine dining, artisanal
foods, wines and cheeses, art galleries, spa facilities and much more --
will carefully preserve these wonderful attributes while creating a charming
new enclave that will benefit both the immediate neighborhood and the entire
city of San Francisco."
Ghirardelli Square is a historic San Francisco destination, offering
shopping, art galleries, family events, walking tours and more. Steeped
in the history of the Ghirardelli chocolate family dating back to the mid-1800s,
Ghirardelli Square was the original site of the family's chocolate, cocoa,
mustard and box factories. Today, it is a popular destination for visitors
and Bay Area residents who desire a unique shopping and dining experience.
As one of the first successful mixed-use redevelopment projects in the
United States, Ghirardelli Square has been a San Francisco landmark for
more than 100 years and to ensure its preservation for future generations,
the Square was granted National Historic Register status in 1982.
About Fairmont Heritage Place
Fairmont Heritage Place is an exclusive private residence club collection
offering vacation home ownership in some of the world's most sought after
locations. Fairmont Heritage Place Acapulco, its first residence club,
opened in September 2004. Located next to The Fairmont Acapulco Princess
resort, this residence project is already in its third phase. Fairmont
Heritage Place also manages the Fairmont Heritage Place Franz Klammer Lodge
in Telluride, Colorado and planning is underway for Fairmont Heritage Place
Barbados. Future development is being planned at select Fairmont resort
locations, as well as potential joint ventures with third party developers
in other locations. For additional information, please visit our website:
About Fairmont Hotels & Resorts Inc.
FHR is a leading owner/operator of luxury hotels and resorts. FHR's
managed portfolio consists of 88 luxury and first-class properties with
approximately 33,000 guestrooms in the United States, Canada, Mexico, Bermuda,
Barbados, United Kingdom, Monaco, Kenya and the United Arab Emirates as
well as two vacation ownership properties managed by Fairmont Heritage
Place. FHR owns Fairmont Hotels Inc., North America's largest luxury hotel
management company, as measured by rooms under management, with 50 distinctive
city center and resort hotels including The Fairmont San Francisco, The
Fairmont Banff Springs and The Fairmont Scottsdale Princess. FHR also owns
Delta Hotels, Canada's largest first-class hotel management company, which
manages and franchises 38 city center and resort properties in Canada.
In addition to hotel management, FHR holds real estate interests in 27
properties and an approximate 24% investment interest in Legacy Hotels
Real Estate Investment Trust, which owns 24 properties. FHR owns FHP Management
Company LLC, a private residence club management company that operates
Fairmont Heritage Place, a vacation ownership business.
About JMA Ventures, LLC
JMA is a full service San Francisco based real estate investor with
in- house acquisition, development, finance, leasing, and management capabilities.
The company has compiled a 20-year track record of successful projects,
both residential and commercial, combining investment and development expertise
with a commitment to the highest quality of design, luxury, materials and
workmanship. JMA currently serves as general partner for in excess of $350
million of real estate investments across the western United States. For
more information, please visit www.jmaventuresllc.com.
About Pacific Coast Capital Partners, LLC
Pacific Coast Capital Partners, LLC ("PCCP") is a provider of opportunistic
debt and equity capital for real estate in the western United States. With
offices in San Francisco and Los Angeles, PCCP provides capital to the
entire spectrum of real estate projects and capital structures. PCCP has
invested more than $3 billion in California and other western states' properties
and continues to seek value-added investment opportunities with proven
operators seeking creative, fast and reliable capital.