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Fairmont Pays $70M for Rest of Management Business

TORONTO-The locally based hotel company acquires the remaining 16.5% interest it didn't already own in its hotel management company.

By Brian K. Miller | Updated on August 26, 2004

TORONTO-Locally based Fairmont Hotels & Resorts Inc. has acquired for $70 million the remaining 16.5% interest in its namesake hotel management company that it didn’t already own. The interest was held by Maritz, Wolff & Co., a Los Angeles private investment fund that owns some 50 hotels.Fairmont IR director Emma Thompson tells GlobeSt.com that Maritz and Saudi Arabia’s billionaire prince Alwaleed Bin Talal Bin AbdulAziz Alsaud each owned a 50% interest in the original Fairmont management business and brand. In October 1999, Canadian Pacific Hotels & Resorts merged its business with the Fairmont business, creating Fairmont Hotels & Resorts. Maritz and Alwaleed Bin Talal each retained a 16.5% interest in the associated management company.As part of the merger, Maritz held a put option allowing it to sell its interest in the management company for the aforementioned price. Alwaleed Bin Talal exchanged his interest in the management company for 2.87 million common shares in the public company in September 2002. Fairmont Hotels & Resorts’ managed portfolio includes 82 properties with more than 33,000 guestrooms in the United States, Canada, Mexico, Bermuda, Barbados and the United Arab Emirates. The company owns Fairmont Hotels Inc., which manages 44 high-end hotels such as The Fairmont San Francisco, The Fairmont Banff Springs and The Fairmont Scottsdale Princess.

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