Fairmont Hotels Reports Lower 3rd Qtr Income of $69 million, a 47% Drop

Worldwide RevPar Increased 12.3% Driven by Strong U.S. Performance

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. October 14, 2008

TORONTO, Canada, October 26, 2005. Fairmont Hotels & Resorts Inc. ("FHR" or the "Company") today announced its unaudited financial results for the three and nine months ended September 30, 2005. These financial results have been prepared in accordance with Canadian generally accepted accounting principles. All amounts are expressed in U.S. dollars.

Third Quarter 2005 Highlights:

• Diluted income per share ("diluted EPS") for the third quarter was $0.92 compared to $1.66 for the same period in 2004. Excluding the effect of hotels sold in 2004, gains on asset sales, tax recovery and other non-operating items, diluted EPS rose 37.1% to $0.48.

• Revenues increased 15.7% to $240.1 million. Excluding the effect on revenues of hotels sold in 2004 and the proceeds from land sales, revenues were up 8.9%.

• Revenue per available room(1) ("RevPAR") for the comparable(2)Fairmont managed portfolio improved 12.3% to $147.63, driven by RevPAR growth of 19.3% at the comparable U.S. managed portfolio. The Canadian owned hotels experienced RevPAR growth of 7.1%, while RevPAR for the comparable International owned hotels declined 5.8%.

• EBITDA(3) for the third quarter was $79.2 million compared to $207.7 million for the same period in 2004. EBITDA for both periods includes gains on asset sales of $17.9 million and $144.2 million, respectively.

• Adjusted EBITDA(3) for the third quarter of 2005 was $77.8 million compared to $74.3 million for the same period in 2004. Excluding the effect of the hotels sold in 2004 and The Fairmont Southampton, Adjusted EBITDA increased 9.1%.

• Assumed management of and rebranded The Fairmont Newport Beach, bringing the number of Fairmont-managed properties to 50 worldwide.

• Expanded development pipeline with a new management contract for a Fairmont hotel to be built in downtown Vancouver, in connection with an agreement to dispose of the Company's last remaining parcel of undeveloped land in Vancouver. The hotel is anticipated to open in 2009.

• Entered into agreements to sell additional blocks of land located in downtown Toronto.

• Repurchased 2.1 million common shares for a total cost of $65.6 million.

"Our U.S. properties continue to benefit from the robust U.S. lodging fundamentals. In the third quarter, our comparable U.S. managed and owned portfolios experienced RevPAR growth of 19.3% and 20.7%, respectively, driven by strong occupancy gains across all markets," said William R. Fatt, FHR's Chief Executive Officer.

"We continue to execute on our strategy of selling our undeveloped land and expanding our Fairmont management portfolio," commented Mr. Fatt. "The proceeds from these asset sales will be invested in growing our management business and in share repurchases."