7 February 2006
Sale of Fairmont Hotels Won't Bring Local Changes, Says Official
Banff - A key official at the Fairmont Banff Springs is assuring the public that despite the
upcoming sale of Fairmont Hotels that the service and quality guests are used to will not be compromised in the future.
Fairmont, the Bow Valley's largest employer and the Town of Banff's biggest taxpayer, announced last week that Kingdom Hotels and Colony
Capital have entered into an acquisition agreement with Fairmont.
Despite the takeover by Saudi Arabian Prince Alaweed bin Talal Abulaziz Alsaud, owner of Kingdom Hotels, Fairmont Hotels will retain
its brand identity.
"We have always taken great pride in our Canadian heritage and we are keenly aware of the role our grand hotels have played in
history," said Monica Andreeff, director of public relations for both the Fairmont Banff Springs and the Fairmont Chateau Lake
Louise.
Following the completion of the Canada Pacific Railway through Banff National Park in the late 19th century, the Banff Springs was built
to accommodate tourists to the newly discovered majestic park.
The Banff Springs Hotel opened on 1 Jun 1888 and has since become a signature landmark of the area. Andreeff is confident
that this history will not be lost in the takeover.
"Our underlying ideals, values and beliefs are reflective of our Canadian roots," continued Andreeff. "Fairmont will
remain an independent company managed and headquartered in Canada. "It will continue to be bound by Canadian law, pay Canadian
taxes and employ Canadians."
The acquisition was unanimously approved by the company's board of directors, but has yet to be approved by the federal government as
well as shareholders.
Should the deal go through, which is most likely, it will happen in April of this year, said Andreeff.
Despite the takeover of the chain by a foreigner, Andreeff does not expect there to be any fundamental changes in the organization and sees this as an opportunity for growth.
"We've made a successful transition from a once domestic hotel company to an international and global brand," said Andreeff.
"With an expanding international portfolio of exceptional resorts and gateway city properties, our guests will be exposed to new,
exciting destinations with different cultures."
Since Fairmont was publicly owned and traded on the stockmarket, as Andreef explained, it was already "globally owned."
"That won't change," said Andreef.
Guests of the hotel weren't sounding quite as convinced on Monday.
Although two American tourists visiting from California recognized that there were positive aspects to the acquisition, on a broader
scale there is a fundamental difference between a publicly owned company and one controlled by a billionaire with a foreign power, they
suggested.
"There's good and bad," said Dallas Richards. "Because of the money going into it, it is probably going to make
money."
His friend, Richard, who asked that his last name not be published, was not so sure.
"It's probably going to take a turn for the worse," he said outside the hotel. "It will be owned by someone who doesn't
live here."
Richard anticipates that the Saudi Prince will not be exposed to his investment.
"There are environmental issues. This is a historical site. I will be interested to see the labour management issue. Everyone's
worried about foreigners coming (to North America and taking over.)"
Nevertheless, Andreeff assured the Crag that the management and hotel would not be changing.
"We do not anticipate any significant changes to any of Fairmont's programs' level of service. There will be no changes to the
daily operations of our hotels and resorts as a result of this transaction.
"It is business as usual at Fairmont and at Fairmont Banff Springs."
Shares in Fairmont will be sold at $45 apiece, making the sale a $3.9 billion transaction. Shares in Fairmont have gone up 28 percent
since November, when there was public speculation that the hotel chain would be taken over. It accompanied downsizing in the ranks of
some management staff in Banff.
Fairmont owns hotels across the country as well as in the U.S.A. and the Caribbean.
Kingdom Hotels is a trust owned by the Prince Alaweed, who also has interests in other hotels such as the Four Seasons chain.
Colony is a private international investment firm focused primarily on real estate assets and operating companies.
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