Fairmont Hotels & Resorts (FHR) has closed a previously announced transaction with a subsidiary of Kingdom Hotels, an affiliate of a trust created by Saudi Prince Al-Waleed Bin Talal Bin Abdulaziz Al-Saud, to exchange its 16.5 percent interest in Fairmont Hotels Inc. (FHI), the Fairmont management company, for shares of the public company FHR.
As a result of this transaction, FHR issued 2,875,000 shares to Kingdom, equivalent to approximately 3.7 percent of FHR's issued and outstanding shares. FHR's interest in FHI has now increased to 83.5 percent from 67 percent. A partnership managed by Maritz, Wolff & Co. will continue to hold the balance of 16.5 percent.
Commenting on the closing, Prince Alwaleed, president of Kingdom, said, "We are pleased with this transaction as it provides us with a broader exposure to all of FHR's assets, not only the management business. Kingdom intends to be a long-term investor and we look forward to our continued relationship with FHR."
Kingdom and its affiliates have so far made investments in the hotel industry totaling more than $700 million. The Kingdom hotel investment portfolio includes stakes in Fairmont Hotels & Resorts Inc., Four Seasons Hotels Inc. and Movenpick Hotels & Resorts AG, and includes holdings in prominent hotel assets such as The Plaza in New York City and the Four Seasons George V Hotel in Paris.
William R. Fatt, chief executive officer of FHR, commented, "We value our relationship with Kingdom as a hotel real estate owner and now as a long-term shareholder in FHR. This transaction provides us with greater investment in FHI, where we anticipate significant growth over the next few years."
FHR is a North American owner and operator of luxury hotels and resorts. FHR's portfolio consists of 78 properties with approximately 31,000 rooms in Canada, the United States, Mexico, Bermuda, Barbados and the United Arab Emirates (UAE).
It holds an 83.5 percent controlling interest in FHI, North America's largest luxury hotel management company. FHI manages 39 city center and resort hotels. 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 38 city center and resort properties in Canada.
In addition to hotel management, FHR holds real estate interests in 22 properties, two large undeveloped land blocks and an approximate 35 percent investment interest in Legacy Hotels Real Estate Investment Trust, which owns 22 properties. — (menareport.com)
© 2002 Mena Report (www.menareport.com )