TORONTO, April 15, 2002 - Fairmont Hotels & Resorts Inc.
("FHR") (TSE and NYSE Symbol: FHR) today reported results for the first
quarter ended March 31, 2002. All amounts are expressed in U.S. dollars.
FHR's financial results for the three months ended March 31, 2001 contain
substantial non-recurring items related to the reorganization of Canadian
Pacific Limited ("CPL"), including the operating results of CPL's four
discontinued businesses, reorganization expenses and CPL corporate expenses.
CPL's reorganization became effective September 30, 2001. Given the inclusion
of these non-recurring charges, prior period net income and earnings per
share are not considered by management to be comparable with the current
year.
First Quarter Consolidated Results
Revenues of $126.7 million for the quarter were down 5.8% from $134.5
million last year. EBITDA1 was $38.1 million for the quarter compared to
$37.8 million in the same period in 2001. EBITDA benefited from approximately
$3.7 million in cost reductions that are not likely to be repeated.
Income from continuing operations was $13.6 million for the first quarter
of 2002 compared to a loss from continuing operations of $4.5 million in
the prior period. Income from continuing operations per share was $0.17
in 2002 compared to a loss from continuing operations per share of $0.08
for the same period in 2001.
Operating results significantly surpassed expectations and reflect
better business trends than anticipated. In addition, we benefited from
lower debt levels and the elimination of CPL corporate activities offset
by a weakening in the Canadian dollar.
Given the seasonality of hotel operations and the fixed nature of most
operating costs, first quarter results are not indicative of results for
the full year.
"We are pleased with our EBITDA and EPS performance in the first quarter
of 2002, exceeding the company's previous quarterly guidance. Operating
results surpassed expectations as a result of a sharper than anticipated
recovery in travel volumes. Expenses were contained based on our original
expectation of lower business levels in the first quarter," said William
R. Fatt, Chief Executive Officer of FHR. "Revenue per available room,
or RevPAR, at our owned properties declined by 7.1% while RevPAR at Fairmont
managed hotels, which include a significant number of U.S. city center
hotels, declined by 10.2%, both ahead of published industry results. Based
on these positive first quarter results and our current outlook, we believe
it is now appropriate to increase modestly our previous EBITDA and EPS
guidance for 2002."
Outlook
As a result of stronger than anticipated first quarter earnings, FHR
has increased its full year 2002 EBITDA guidance range from $180 - $190
million to $190 - $200 million. This guidance continues to anticipate an
improvement in business conditions, particularly in the latter half of
2002. FHR estimates that EPS for the year will be approximately $1.00,
which is an increase from the original guidance of $0.79 - $0.87.
For the second quarter of 2002, FHR anticipates EBITDA of approximately
$50 million, or basic EPS of about $0.28, however investors are cautioned
that quarterly performance tends to be more difficult to predict.
Mr. Fatt said, "It appears that the positive trends we have seen thus
far will continue for the balance of the year and into 2003. Minimal new
hotel supply over the next few years should contribute to improved performance
in the luxury sector. We continue to view the U.S. as a key growth market
and expect to take advantage of near-term expansion opportunities resulting
from our strong balance sheet and proven operating capabilities."
First Quarter Hotel Ownership Operations
Revenues from hotel ownership operations decreased 3.3% in the first
quarter of 2002. The decline resulted primarily from weaker industry conditions,
a changed mix of properties and currency fluctuations. These negative factors
were offset by improved quarter-over-quarter performance at certain resort
locations due to significant renovation activities during 2001.
RevPAR for comparable hotels decreased 7.1% for the three months ended
March 31, 2002, resulting from a 2.7 point drop in occupancy and a 3.2%
decrease in average daily rate ("ADR"). Approximately $2.41 or 25% of the
$9.63 decline in RevPAR was caused by currency fluctuations. The U.S. and
international comparable statistics showed the greatest RevPAR decline
at 9.3%. RevPAR at our Canadian comparable portfolio declined 3.6%, all
of which related to currency fluctuations. In the absence of these fluctuations,
RevPAR at the Canadian properties would have realized a slight improvement
over the prior quarter.
The reduction in revenues was significantly less than the decrease
in RevPAR in the first quarter. This was due primarily to the exclusion
of the two Bermuda properties from RevPAR statistics as a result of the
major renovations in 2001 that have significantly improved operating results
in 2002.
First Quarter Management Operations
Fairmont
Revenues under management in the first quarter of 2002 decreased 6.0%
to $284 million. Almost all the decrease related to declines at U.S. city
center hotels, the segment of the industry most affected by the events
of September 11, 2001.
Fee revenues remained unchanged from 2001, despite the decline in revenues
under management. Management fee revenues are typically lowest in the first
half of the year since incentive fee thresholds are not generally reached
until later in the year.
RevPAR decreased 10.2% for the first quarter of 2002. The majority
of the decline relates to a 7.5% drop in ADR. Occupancy for the Fairmont
portfolio was much better than anticipated with a decline of only 1.8 points.
Of the $11.14 decline in RevPAR, approximately $1.93 or 17% was caused
by currency fluctuations.
Delta
Revenues under management decreased 9.9% to $64 million resulting from
lower occupancies during the quarter. Management fee revenues declined
in accordance with the lower revenues under management.
RevPAR for the Delta properties declined 12.2% during the quarter.
A 5.8 point decrease in occupancy and a 3.0% drop in ADR caused this decline.
Delta managed to maintain its rates throughout the quarter with the ADR
decline relating exclusively to a decrease in the value of the Canadian
dollar. When measured in Canadian currency, Delta managed to increase ADR
by approximately 2%.
Capital Expenditures
Capital expenditures for the quarter totaled $34.5 million. During the
first quarter, FHR completed significant capital expenditures at several
of its hotels. Attractive returns on the capital invested are expected
to be achieved once the properties realize the full benefit of these improvements,
which typically occurs one to two years after completion. FHR expects that
2002 capital expenditures will be in the range of $110 to $120 million.
Development Activities
In February 2002, FHR opened its first overseas property with the addition
of The Fairmont Dubai in the United Arab Emirates. The construction of
a new Fairmont resort in Puerto Rico, in which FHR will hold a minority
interest, is expected to begin in the second half of 2002, with completion
anticipated in 2004.
In January 2002, Delta assumed the management of the Delta Red Deer
Hotel and Conference Centre in Alberta. The management contract of the
Delta St. Eugene Mission Resort in Cranbrook, British Columbia has
also been secured and the hotel is scheduled to open in the summer of 2002.
The opening of the Delta Sun Peaks Resort in Kamloops, British Columbia
is on schedule for the fourth quarter of 2002.
Mr. Fatt commented, "We are reviewing a number of opportunities at
this time and expect to add several properties per year to our portfolio
through a combination of management contracts, minority equity investments
and full ownership. With one of the lowest debt levels within the industry,
FHR's strong balance sheet provides us with substantial acquisition capacity
to meet our growth objectives."
Three months
Three months
ended March 31, 2002 ended March 31, 2001
Variance
----------------------
---------------------
---------
FAIRMONT MANAGED HOTELS
Worldwide
RevPAR
$ 97.64
$ 108.78
(10.2%)
ADR
160.17
173.11
(7.5%)
Occupancy
61.0%
62.8% (1.8 points)
Canada
RevPAR
$ 65.72
$ 69.31
(5.2%)
ADR
109.54
115.74
(5.4%)
Occupancy
60.0%
59.9% 0.1 points
U.S. and International
RevPAR
$ 140.34
$ 162.84
(13.8%)
ADR
225.46
243.50
(7.4%)
Occupancy
62.2%
66.9% (4.7 points)
DELTA MANAGED HOTELS
Canada
RevPAR
$ 43.02
$ 48.98
(12.2%)
ADR
77.32
79.73
(3.0%)
Occupancy
55.6%
61.4% (5.8 points)
OWNED HOTELS
Worldwide
RevPAR
$ 126.12
$ 135.75
(7.1%)
ADR
195.38
201.76
(3.2%)
Occupancy
64.6%
67.3% (2.7 points)
Canada
RevPAR
$ 83.20
$ 86.33
(3.6%)
ADR
128.85
131.14
(1.7%)
Occupancy
64.6%
65.8% (1.2 points)
U.S. and International
RevPAR
$ 188.09
$ 207.29
(9.3%)
ADR
291.53
298.77
(2.4%)
Occupancy
64.5%
69.4% (4.9 points) |
Comparable hotels and resorts are considered to be properties that were
fully open under FHR management for at least the entire current and prior
period. Given the strategic importance of the acquisition of The Fairmont
Kea Lani Maui, it has been included in FHR's operating statistics in the
preceding chart on a pro forma basis as if owned since the beginning of
the prior period. Comparable hotels and resorts statistics exclude properties
under major renovation that would have a significant adverse effect on
the properties' primary operations. For both the three month periods ending
March 31, 2002 and March 31, 2001, The Fairmont Southampton Princess, The
Fairmont Hamilton Princess and The Fairmont Pierre Marques have been excluded
from the comparable data due to renovations.
1 EBITDA is defined as earnings before
interest, taxes, amortization, other income and expenses and reorganization
and corporate expenses. Management considers EBITDA to be a meaningful
indicator of hotel operations, however, it is not a defined measure of
operating performance under Canadian GAAP. FHR's calculation of EBITDA
may be different than the calculation used by other entities.
Fairmont Hotels & Resorts Inc.
Consolidated Balance Sheets
(Stated in millions of U.S. dollars) (Unaudited)
ASSETS
March 31 December
31
2002
2001
-----------
-----------
Current assets
Cash and cash equivalents
$ 68.5
$ 52.7
Accounts receivable
54.0
48.2
Materials and supplies
11.3
11.6
Other
11.5
8.8
----------- -----------
145.3
121.3
Investments in partnerships and
corporations
87.3
87.7
Investment in Legacy Hotels Real Estate
Investment Trust
54.0
56.4
Property and equipment
1,368.9
1,354.0
Goodwill
106.0
106.0
Intangible assets
105.1
105.7
Other assets and deferred charges
53.1
46.2
----------- -----------
$ 1,919.7
$ 1,877.3
----------- -----------
----------- -----------
LIABILITIES
Current liabilities
Accounts payable and accrued
liabilities
$ 123.9
$ 118.4
Income taxes payable
1.5
2.1
Dividends payable
-
1.6
Current portion of long-term
debt
3.6
25.5
----------- -----------
129.0
147.6
Other liabilities
66.6
65.1
Long-term debt
283.0
245.2
Future income taxes
71.9
64.1
Non-controlling interest
50.3
49.9
----------- -----------
600.8
571.9
----------- -----------
Shareholders' equity (note 7)
1,318.9
1,305.4
----------- -----------
$ 1,919.7
$ 1,877.3
----------- -----------
----------- -----------
Fairmont Hotels & Resorts Inc.
Consolidated Statements of Income
(Stated in
millions of U.S. dollars except per share amounts)
(Unaudited)
Three Months ended March 31
2002
2001
----------- -----------
Revenues
Hotel ownership operations
$ 123.8 $
126.3
Management operations
6.3
7.8
Income (loss) from investments
and other (3.4)
0.4
----------- -----------
126.7
134.5
Expenses
Hotel ownership operations
84.7
92.4
Management operations
4.4
2.9
Other
0.2
1.4
----------- -----------
89.3
96.7
----------- -----------
Gains on land held for sale
0.7
-
----------- -----------
Operating income before undernoted
items 38.1
37.8
Amortization
13.7
12.4
Other (income) and expense
(6.9)
2.2
Reorganization and corporate (income)
expenses (note 4)
(0.2)
12.8
Interest expense, net
4.5
16.7
----------- -----------
Income (loss) before income tax expense,
non-controlling interest, goodwill
charges
and discontinued operations
27.0
(6.3)
----------- -----------
Income tax expense (recovery)
Current
4.2
3.8
Future
8.8
(7.1)
----------- -----------
13.0
(3.3)
----------- -----------
Non-controlling interest
0.4
0.9
----------- -----------
Income (loss) before goodwill charges
and
discontinued operations
13.6
(3.9)
Goodwill charges
-
0.7
Taxes thereon
-
(0.1)
----------- -----------
-
0.6
----------- -----------
Income (loss) from continuing operations
13.6
(4.5)
Income from discontinued operations
(note 1) -
315.9
----------- -----------
Net income
13.6
311.4
Preferred share dividends
-
(2.0)
----------- -----------
Net income available to common shareholders
$ 13.6 $
309.4
----------- -----------
----------- -----------
Weighted average number of common
shares
outstanding (in millions) (note
7)
Basic
78.6
78.7
Diluted
80.0
79.0
Basic earnings (loss) per common share
Income (loss) from continuing
operations $ 0.17
$ (0.08)
Discontinued operations
$ -
$ 4.01
Net income
$ 0.17 $
3.93
Diluted earnings (loss) per common
share
Income (loss) from continuing
operations $ 0.17
$ (0.08)
Discontinued operations
$ -
$ 4.00
Net income
$ 0.17 $
3.92
Fairmont Hotels & Resorts Inc.
Consolidated Statements of Cash Flows (Stated in millions of U.S. dollars)
(Unaudited)
Three Months ended March 31
2002
2001
----------- -----------
Cash provided by (used in)
Operating activities
Income (loss) from continuing
operations $ 13.6
$ (4.5)
Items not affecting cash
Amortization and goodwill
charges
13.7
13.1
(Income) loss from investments
and other 3.4
(0.4)
Gains on land held for
sale
(0.7)
-
Future income taxes
8.8
(7.2)
Non-controlling interest
0.4
0.9
Other
(5.4) (11.5)
Changes in non-cash working capital
items (note 5)
(8.1)
(2.4)
Discontinued operations
-
699.5
----------- -----------
25.7
687.5
----------- -----------
Investing activities
Sale of investments and properties
12.3
115.0
Additions to property and equipment
(34.5) (26.2)
Acquisitions
-
(234.6)
Discontinued operations
-
(297.8)
----------- -----------
(22.2) (443.6)
----------- -----------
Financing activities
Issuance of commercial paper
-
61.5
Issuance of long-term debt
39.0
0.3
Repayment of long-term debt
(23.4)
(2.8)
Issuance of common shares
0.4
33.1
Repurchase of common shares
(0.7)
-
Dividends
(1.6) (31.0)
Other
-
(2.5)
Discontinued operations
-
(68.6)
----------- -----------
13.7
(10.0)
----------- -----------
Translation adjustments
(1.4)
-
----------- -----------
Increase in cash
15.8
233.9
Cash - beginning of period
52.7
417.3
----------- -----------
Cash - end of period
$ 68.5 $
651.2
----------- -----------
----------- -----------
Represented by
Cash and cash equivalents
68.5
663.5
Bank overdraft
-
(12.3)
----------- -----------
$ 68.5 $
651.2
----------- -----------
----------- -----------
Fairmont Hotels & Resorts Inc.
Consolidated Statements of Retained Earnings (Deficit)
(Stated in millions of U.S. dollars)
(Unaudited)
Three Months ended March 31
2002
2001
----------- -----------
Retained earnings (deficit) - Beginning
of period as previously reported
$ (19.6) $ 4,745.2
Effect of change in accounting for
foreign
exchange on long-term debt (note
2)
-
(127.2)
----------- -----------
As restated
(19.6) 4,618.0
Net income
13.6
311.4
----------- -----------
(6.0) 4,929.4
Dividends on common shares
-
(29.1)
Dividends on preferred shares
-
(2.0)
----------- -----------
Retained earnings (deficit) - End
of period $ (6.0)
$ 4,898.3
----------- -----------
----------- -----------
Fairmont Hotels & Resorts Inc.
Notes to Consolidated Financial Statements
(Stated in millions of U.S. dollars) (Unaudited)
1. Effective October 1, 2001, Canadian
Pacific Limited ("CPL") completed
a major reorganization
which divided CPL into five separate public companies - Canadian Pacific
Railway Limited, CP Ships Limited, PanCanadian Energy Corporation and Fording
Inc., while retaining its investment in Canadian Pacific Hotels & Resorts
Inc. ("CPH&R")
Pursuant to
the plan of arrangement approved by the shareholders and by the court,
(the "Arrangement"), CPL distributed its approximate 85% investment in
PanCanadian Petroleum Limited and its wholly owned subsidiaries, Canadian
Pacific Railway Company, CP Ships Limited and Fording Inc. to its common
shareholders. This distribution was recorded at the carrying value
of the net investment in each subsidiary. CPL retained its wholly
owned subsidiary, CPH&R, and CPL has changed its name to Fairmont Hotels
& Resorts Inc. ("FHR").
Results from
the four operating businesses that were distributed have been included
in discontinued operations in the consolidated statement of income and
consolidated statement of cash flow at March 31, 2001.
On October
1, 2001, the issued and outstanding common shares of FHR were consolidated
on the basis of one new common share for four old common shares. All share
numbers, including earnings per share figures, reflect the effect of the
share consolidation applied retroactively.
2. These interim consolidated
financial statements do not include all
disclosures
as required by Canadian generally accepted accounting principles for annual
consolidated financial statements and should be read in conjunction with
the audited consolidated financial statements for the year ended
December 31, 2001 presented in the annual report. The accounting
policies used in the preparation of these interim consolidated financial
statements are consistent with the accounting policies used in the December
31, 2001 audited consolidated financial statements, except as discussed
below.
Foreign currency
translation
Effective
January 1, 2002, FHR adopted the new recommendations of the Canadian Institute
of Chartered Accountants ("CICA") with respect to accounting for foreign
currency gains and losses. This standard requires that unrealized
exchange gains and losses related to monetary foreign currency assets and
liabilities be recognized in income immediately. The requirements
of this statement were applied retroactively with restatement of prior
periods and did not have an impact on continuing operations.
Goodwill and
intangible assets
On January
1, 2002, FHR adopted the new recommendations of the CICA with respect to
goodwill and other intangible assets. Under the new recommendations, goodwill
and intangible assets with indefinite lives, including that relating to
investments accounted for under the equity method, are no longer amortized,
but are subject to impairment tests on at least an annual basis. Any impairment
of goodwill or other intangible assets will be expensed in the period of
impairment. Other intangible assets with definite lives will continue
to be amortized over the estimated useful lives and are also tested for
impairment. The recommendations of this new policy will be applied prospectively.
FHR has completed
its impairment testing on the balance of goodwill and intangible assets
with indefinite lives as at January 1, 2002. As a result of this
testing, no impairment losses are required. Brand name is deemed
to have an indefinite life since it is expected to generate cash flows
indefinitely. Upon adoption of these recommendations, it was determined
that no reclassifications of goodwill and intangible assets were required
under CICA recommendations. A reconciliation of previously reported net
income, earnings per share and diluted earnings per share to the amounts
adjusted for the exclusion of goodwill and brand name amortization is as
follows:
Three Months ended March 31
2002
2001
----------- -----------
Reported net
income
$ 13.6 $
311.4
Goodwill amortization
-
0.7
Brand name
amortization
-
0.4
----------- -----------
Adjusted net
income
$ 13.6 $
312.5
----------- -----------
Basic earnings
per share
Reported net
income
$ 0.17 $
3.93
Goodwill amortization
-
0.01
Brand name
amortization
-
0.01
----------- -----------
Adjusted net
income
$ 0.17 $
3.95
----------- -----------
Diluted earnings
per share
Reported net
income
$ 0.17 $
3.92
Goodwill amortization
-
0.01
Brand name
amortization
-
0.01
----------- -----------
Adjusted net
income
$ 0.17 $
3.94
----------- -----------
Stock-based
compensation
FHR accounts
for grants under its Key Employee Stock Option Plan and Directors' Stock
Option Plan ("KESOP") using the intrinsic value method of accounting for
stock-based compensation costs. Under the CICA recommendations on
stock-based compensation plans, FHR will be providing proforma net income
and proforma earnings per share, as if the fair value based accounting
method had been used to account for stock-based compensation for any options
granted after January 1, 2002.
3. Results for the three months
ended March 31, 2002 are not necessarily
indicative
of the results that may be expected for the full year due to seasonal and
short-term variations. Revenues are typically higher in the second
and third quarters versus the first and fourth quarters of the year in
contrast to fixed costs such as amortization and interest, which are not
significantly impacted by seasonal or short-term variations.
4. Corporate expenses for 2001
were costs associated with the corporate
activities
performed by CPL for its subsidiaries, including CPH&R, prior to October
1, 2001. The majority of these corporate activities have been eliminated
subsequent to October 1, 2001.
5. Changes in non-cash working
capital:
Three Months ended March 31
2002
2001
----------- -----------
Decrease (Increase)
in current assets
Accounts Receivable
$ (5.8) $
(6.7)
Materials and Supplies
0.3
(1.1)
Other
(2.7)
7.3
Increase (Decrease)
in current
liabilities
Accounts payable and
accrued liabilities
5.5
5.9
Income taxes payable
(0.6)
0.9
----------- -----------
(3.3)
6.3
Adjustments
for disposals
and
acquisitions
(4.8)
(8.7)
----------- -----------
$ (8.1) $
(2.4)
----------- -----------
6. The continuing operations
of FHR have five reportable operating
segments in
two core business activities, ownership and management operations.
The segments are Hotel Ownership, Investment in Legacy Hotels Real Estate
Investment Trust ("Legacy"), Land Held for Sale, Fairmont Hotels Inc. ("Fairmont")
and Delta Hotels Limited ("Delta"). Hotel ownership consists of real
estate interests ranging from approximately 20% to 100% in 21 properties.
The investment in Legacy consists of an approximate 35% equity interest
in Legacy, which owns 21 hotels and resorts across Canada. Land held
for sale consists primarily of two large undeveloped land blocks in Toronto
and Vancouver. Fairmont is a luxury hotel management company and Delta
is a Canadian first class hotel management company.
The performance
of all segments is evaluated primarily on operating income before amortization,
other income and expense, reorganization and corporate expenses, interest
and income taxes ("EBITDA"). Amortization, other income and expenses,
reorganization and corporate expenses and goodwill charges are not allocated
to the individual segments. All transactions among operating segments
are done at fair market value.
The following
tables present revenues, EBITDA, total assets and capital expenditures
for FHR's reportable segments:
Three Months ended March 31, 2002
Ownership
Management Inter-
----------------------- --------------- segment
Elimi-
Land
nation
Held for
and
Hotel Legacy Sale(a) Fairmont
Delta Other(b) Total
------- ------ -------- -------- -----
-------- -----
Revenues $ 124.9
$ (4.5) $ 0.7 8.8
$ 2.2 $ (5.4) $ 126.7
EBITDA
35.5 (4.5) 0.5
5.2 1.4 -
38.1
Total
assets
1,734.4 54.0 89.9
195.9 71.2 (225.7) 1,919.7
Capital
expend-
-itures
29.9 -
3.3 1.3
- -
34.5
Three Months ended March 31, 2001
Ownership
Management Inter-
----------------------- --------------- segment
Elimi-
Land
nation
Held for
and
Hotel Legacy Sale(a) Fairmont
Delta Other(b) Total
------- ------ -------- -------- -----
-------- -----
Revenues $ 129.2
$ (2.5) $ -
8.8 $ 2.5 $ (3.5) $ 134.5
EBITDA
33.3 (2.5) (1.4)
6.8 1.6 -
37.8
Total
assets(c) 1,509.7
59.1 102.7 165.0
79.1 298.2 2,213.8
Capital
expend-
-itures
24.4 -
1.4 -
0.4 -
26.2
(a) Revenues
represent gains on disposal of land held for sale.
(b)
Inter-segment eliminations represent management fees that are
charged by Fairmont and Delta to the hotel ownership operations,
which are eliminated on consolidation. Other represents corporate assets.
(c)
Total assets exclude the assets of discontinued operations.
7. Shareholders' equity
March 31 December 31
2002
2001
----------- -----------
Common shares
$ 1,162.3 $
1,162.4
Contributed
surplus
142.1
142.4
Foreign currency
translation
20.5
20.2
Retained deficit
(6.0)
(19.6)
----------- -----------
$ 1,318.9 $
1,305.4
----------- -----------
The diluted
weighted-average number of common shares outstanding is calculated as follows:
Three Months ended March 31
2002
2001
----------- -----------
(in millions)
Weighted-average
number of
common
shares outstanding - basic
78.6
78.7
Stock options
1.4
0.3
----------- -----------
Weighted-average
number of
common
shares outstanding - diluted
80.0
79.0
----------- -----------
In October
2001, the Company announced a program to repurchase in a 12 month period,
up to 10% of its outstanding shares. For the three months ended March 31,
2002, FHR had repurchased 28,800 shares for total consideration of $0.7.
During the three months ended March 31, 2002, FHR issued 34,891 shares
pursuant to KESOP for total proceeds of $0.4. No options were granted during
the three months ended March 31, 2002.
At March 31,
2002, 78,622,459 common shares were outstanding (2001 - 78,894,771).
8. Certain of the prior period
figures have been reclassified to conform
with the presentation
adopted for 2002. |
About Fairmont Hotels & Resorts Inc.
FHR is one of North America's leading owner/operators of luxury hotels
and resorts. FHR's portfolio consists of 77 luxury and first class properties
with approximately 31,000 rooms in Canada, the United States, Mexico, Bermuda,
Barbados and the United Arab Emirates. It holds a 67 percent controlling
interest in Fairmont Hotels & Resorts ("Fairmont"), North America's
largest luxury hotel management company. Fairmont manages 38 distinct city
center and resort hotels such as The Fairmont San Francisco, The Fairmont
Banff Springs, Fairmont Le Chateau Frontenac, The Fairmont Scottsdale Princess
and The Plaza in New York City. FHR also holds a 100 percent 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 21 properties, two large undeveloped land blocks and an approximate
35 percent investment interest in Legacy Hotels Real Estate Investment
Trust, which owns 21 properties.
This press release contains certain forward-looking statements relating,
but not limited to, FHR's operations, anticipated financial performance,
business prospects and strategies. |
