TORONTO, July 15 /CNW/ - Fairmont Hotels & Resorts Inc. ("FHR" or the
"Company") (TSX/NYSE: FHR) today announced that it has completed the sale of
its real estate interest in The Fairmont Kea Lani Maui to Host Marriott
Corporation ("HMT") (NYSE: HMT) for $355 million, or $789,000 per room. The
resort will continue to be known as The Fairmont Kea Lani Maui and will be
managed by Fairmont under the existing long-term management contract.
FHR expects to reinvest a portion of the proceeds in additional hotels
over the course of the next year. The Company also intends to use the sale
proceeds to acquire the remaining interest in the Fairmont management company,
to increase its share purchases under its existing share repurchase program
and, in the interim, to reduce existing indebtedness.
"We are pleased to have been able to capitalize on our success with The
Fairmont Kea Lani Maui. This sale reinforces our strategy of acquiring
attractive assets, realizing the value created through improved performance
and then redeploying the capital to continue growing the Company," commented
William R. Fatt, Chief Executive Officer of FHR. "We look forward to working
with such a well-respected hotel owner as Host Marriott and hope this
partnership is the first of many opportunities between both companies."
When the Company reports its second quarter results on July 22, FHR will
revise its 2004 earnings guidance to reflect the impact of this sale.

About Fairmont Hotels & Resorts Inc.
FHR is one of North America's leading owner/operators of luxury hotels
and resorts. FHR's managed portfolio consists of 82 luxury and first-class
properties with more than 33,000 guestrooms in the United States, Canada,
Mexico, Bermuda, Barbados and the United Arab Emirates. FHR owns Fairmont
Hotels Inc., North America's largest luxury hotel management company, as
measured by rooms under management, with 44 distinctive city center and resort
hotels such as 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 22 properties and an approximate 35% investment
interest in Legacy Hotels Real Estate Investment Trust, which owns 24
properties.