Bermuda's two Princess Hotels helped parent Fairmont Hotels & Resorts Inc. (FHR) report a 36.4 percent increase in earnings before interest, tax, depreciation and amortisation (EBITDA). Releasing results yesterday William R. Fatt, chief executive officer of FHR said: “The third quarter is traditionally our strongest quarter and therefore an important indicator of the year's results. We are pleased with our performance during the quarter which met our expectations. Revenue per available room, or RevPAR, at our owned properties increased 2.9 percent, while RevPAR at the Fairmont managed hotels was up 2.6 percent. Both increases were driven by improved occupancy levels and were ahead of published industry reports.”

Fairmont's Southampton and Hamilton Princesses were credited with dramatic increases in revenues, he said. “In addition, extensive renovation investments made over the past few years are beginning to generate returns, notably at the two Bermuda properties. In the third quarter, RevPAR at The Fairmont Southampton Princess and The Fairmont Hamilton Princess increased 14.0 percent and 37.5 percent, respectively.”

Mr. Fatt added: “FHR's hotel portfolio continues to benefit from its geographical diversity and balanced customer mix. Our third quarter results for the Canadian and international operations continued to reflect better trends than the US, specifically the US city centre segment where the Corporation currently generates about five percent of its EBITDA.”

FHR's Canadian properties account for approximately half of the Corporation's annual EBITDA. The company also said strength in the leisure segment, which represents about half FHR's overall business, has helped mitigate the effect of prolonged weakness in corporate demand. Concerning FHR's outlook the corporation expects to finish the year at the high end of its annual EBITDA guidance range of $190 -$200 million.

Mr. Fatt said: “The current economic environment continues to present challenges. Our mid-year guidance anticipated a modest improvement in business conditions through the latter half of 2002, however, this improvement has not yet materialised. We are cautiously optimistic that continued strength in the North American leisure segment and the Canadian economy, combined with diligent cost controls and the positive impact of our extensive renovation program will allow FHR to generate attractive earnings growth.” Mr. Fatt concluded: “We expect our recent additions to the portfolio, coupled with growing returns from capital previously invested in our portfolio, to position us well for 2003.”