Fairmont Clinches $109 Million Gain on Sale of Hawaii´s Fairmont Orchid

Fairmont Hotels & Resorts Inc. (FHR) announced that it has sold The Fairmont Orchid, Hawaii to Westbrook Partners for $250 million. The resort will continue to be known as The Fairmont Orchid, Hawaii and will be managed by Fairmont under a long-term management contract.

In December 2002, the Company purchased The Fairmont Orchid for $140 million. With the completion of this sale, Fairmont will realize a pre-tax gain of approximately $109 million. Fairmont is considering a number of alternatives for the sale proceeds, which it expects to reinvest in other hotel assets.

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 34,000 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.

Westbrook Partners is a fully integrated real estate investment management company with offices in New York, San Francisco, London, Paris and Tokyo. Westbrook´s professionals have a long-standing track record of investing that encompasses seven real estate funds spanning over 14 years.