For the quarter, gross operating revenues of $117.7 million represented an increase of 24.4% over $94.6 million in the same quarter last year.  This was mainly a result of the acquisitions completed in the second half of 2000 and in early 2001.  Operating income from hotel operations, or hotel EBITDA, was up 8.3% to $11.4 million from $10.5 million in the first quarter of 2000.  On a same store basis for the quarter, energy costs were up $1.3 million or 24.4%.  Otherwise, the increases in direct operating expenses are attributable to the recent acquisitions.

First quarter results are traditionally the weakest and are not indicative of results for the full year.  This quarter included The Fairmont Empress and Fairmont Le Château Frontenac from the date of their acquisition on February 1, 2001.  Excluding the results from these two resorts, Legacy�s results would have shown revenues of $106.2 million compared to $94.6 million in 2000, hotel EBITDA of $12.7million compared to $10.5 million in 2000, net loss of $3.1 million compared to a loss of $3.7 million in 2000 and a distributable loss of $0.8 million compared to a loss of $1.8 million in the first quarter last year. 
 

The Fairmont Empress and Fairmont Le Château Frontenac increase the seasonal fluctuations in Legacy�s earnings.  As destination resorts they attract a significant portion of their business in the second and third quarters and typically report lower earnings in the first and fourth quarters.  The results of the two resorts reflected in the first quarter earnings were ahead of the pro forma results that were used for valuation purposes.

Consequently, Legacy recorded a net loss of $8.5 million in the quarter compared to a loss of $3.7 million in the same period last year and a distributable loss of $5.6 million compared to a loss of $1.8 million in the first quarter of 2000.  The distributable loss per unit on a fully diluted basis was $0.068 compared to $0.030 this quarter in 2000.

Toronto and Montreal continue to be strong markets for Legacy�s luxury and first class hotels. Ottawa remains one of Legacy�s stronger markets but showed slower growth this quarter with RevPAR up 4.9% compared to this quarter last year.  Calgary and Vancouver continue to experience some weakness as a result of hotel supply growth in both markets over the past few years.

On a year over year basis for the quarter, Legacy�s portfolio had RevPAR growth of 8.0% to $84.05, resulting from a 4.6%, or $6.07, increase in average daily rate combined with a 1.9-point increase in occupancy to 60.3%. The Fairmont Empress, Fairmont Le Château Frontenac and the two Winnipeg hotels have been included in the year over year comparisons as if owned for the full quarters represented. 

As previously announced on March 7, 2001, Legacy�s Board of Trustees declared a first quarter distribution of $0.25 per unit to Unitholders of record as of March 30, 2001, payable on or about April 20, 2001.  This distribution is consistent with that of the fourth quarter in 2000.

Legacy remains on track with management�s expectations for 2001.  The North American economic slowdown has not had a material impact on Legacy�s results to date, however, operating conditions may be affected depending on the length and severity of the slowdown.

Legacy�s annual meeting of Unitholders will be held at The Fairmont Royal York in Toronto at 9:00 a.m. E.S.T. on Tuesday, April 24, 2001.

Legacy�s current portfolio consists of 21 luxury and first class hotels from coast to coast in Canada with over 9,500 rooms.  Fairmont Hotels & Resorts manages the ten 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�.