Fairmont Hotels & Resorts Inc. ("FHR" or the "Company") (TSX/NYSE: FHR) today announced its financial results for the three months and year ended December 31, 2005. These financial results have been prepared in accordance with Canadian generally accepted accounting principles. All amounts are expressed in U.S. dollars.

Fourth Quarter 2005 Highlights

- Diluted income per share ("diluted EPS") for the fourth quarter was $0.88 compared to a diluted loss per share of $0.06 for the same
period in 2004. Excluding the effect of hotels sold in 2004 and 2005 gains on asset sales, a tax recovery and other non-operating items, diluted EPS rose to $0.12 from a diluted loss per share of $0.05 in the fourth quarter of 2004.

- Revenues increased 40.9% to $232.4 million. Excluding the effect on revenues of hotels sold in 2004 and 2005 and the proceeds from land sales, revenues were up 16.8%.

- Revenue per available room(1) ("RevPAR") for the comparable(2)Fairmont managed portfolio improved 11.8% driven by RevPAR growth of 15.4% at the comparable U.S. and International managed portfolios.

- EBITDA(3) for the fourth quarter was $116.2 million compared to $20.4 million for the same period in 2004. Fourth quarter EBITDA included a gain on asset sales of $122.9 million in 2005 and a loss of $0.5 million in 2004. As a result of the sale of The Fairmont Orchid, Hawaii on December 23, EBITDA and Adjusted EBITDA in the fourth
quarter were $2.0 million lower than previously expected due to lost real estate earnings from the resort during the holiday season.

- Adjusted EBITDA(3) for the fourth quarter of 2005 was $31.6 million compared to $34.2 million for the same period in 2004. Adjusted EBITDA increased 9.9% when excluding the impact of the hotels sold in 2004 and 2005 and The Fairmont Southampton, which was closed for hurricane repairs during the first quarter of 2004 and therefore was excluded from FHR's comparable portfolio.

- FHR sold its real estate interest in The Fairmont Orchid for a gain of $105.8 million while maintaining a long-term management contract.

- The Company entered into six agreements for hotel and/or residential developments, all opening between 2007 and 2009.

- FHR completed the sale of two blocks of land in Toronto's Southtown for gross proceeds of $42.8 million.

- The Company announced an Acquisition Agreement with Kingdom Hotels International and Colony Capital for all of FHR's outstanding common shares at a price of $45.00 per share in cash (see Announcements and Corporate Activities).
"Our U.S. properties continue to benefit from the robust U.S. lodging fundamentals. In the fourth quarter, our comparable U.S. managed and owned portfolios experienced RevPAR growth of 15.0% and 9.6%, respectively,
primarily driven by strong occupancy gains across all markets," said William R. Fatt, FHR's Chief Executive Officer. "Our International portfolio also had significant gains, with RevPAR at the managed and owned portfolios up 17.0% and 11.3%, respectively."Looking ahead to 2006, we expect current industry trends to continue

with ongoing strength in our U.S. and International properties. As our
Canadian portfolio earns such a significant portion of its annual earnings inthe third quarter, it is too early to provide details on performance," saidMr. Fatt. "Going forward, we remain focused on enhancing the performance ofour portfolio, building on the success of our brand and expanding into new keycity center and resort destinations. We are excited about the opportunity tocombine the Fairmont and Raffles portfolios to create a global luxury hotelleader. These two brands are an excellent strategic fit with rich histories,global brand recognition and complementary destinations."

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