Fairmont to manage The Savoy Hotel in London

Fairmont Hotels & Resorts has entered into an agreement to manage The Savoy Hotel, one of London's most renowned and prestigious hotel properties. Concurrently, a company affiliated with His Royal Highness Prince Alwaleed Bin Talal Bin Abdulaziz Al Saud and Bank of Scotland Corporate, part of HBOS plc, have entered into discussions with the hotel owner, Quinlan Private, to purchase the hotel. Subject to the successful sale of the property, Fairmont will assume the management responsibilities of The Savoy in January 2005.

''This agreement will provide Fairmont with the opportunity to extend our distinctive portfolio to one of the world's key gateway cities in such a critically strategic market with one of its most celebrated luxury hotels,'' said William R. Fatt, Fairmont's Chief Executive Officer. ''The addition of The Savoy, our first hotel in Europe, will provide the ideal platform for further expansion in Europe and position the Fairmont brand for continued international growth.''

''The historic significance of The Savoy, its location and clientele are a perfect complement to our current Fairmont portfolio,'' continued Mr. Fatt. ''We look forward to working with our partners to complete the renovation program. Current plans are to invest approximately $48 million to restore The Savoy to its pre-eminent position in London.''

Mr. Fatt went on to say, ''We are pleased to be working with Prince Alwaleed on another hotel transaction and are excited about our new relationship with Bank of Scotland, which we hope will be the first of many partnership opportunities.''

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