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Fairmont Agrees to Be Acquired By Kingdom Hotels and Colony CapitalJanuary 31, 2006 By: Erin Sternthal Travel Agent
Fairmont Hotels & Resorts has signed an acquisition agreement with Kingdom Hotels International and Colony Capital. The two companies plan to merge the Fairmont and Raffles portfolios creating a global luxury hotel portfolio with 120 properties in 24 countries. Each brand, however, will remain independent with Fairmont's headquarters to stay in Canada and Raffles' in Singapore. According to Thomas Barrack, Jr., chairman and CEO of Colony, "Joining the two luxury companies creates an ideal platform for continued international expansion." The transaction is subject to shareholder approval. Shareholders are expected to meet in April, and the transaction is expected to close in the second quarter of this year.