TORONTO, (Reuters) - Fairmont Hotels yesterday reported a rise in second-quarter earnings from operations after renovations to several hotels, two of them in Bermuda.

Fairmont, spun off from conglomerate Canadian Pacific last year, said it earned $28.9 million, or 37 cents a share, beating a forecast of 29 cents a share from nine analysts polled by Thomson First Call. The earnings were higher from last year's second-quarter, when income from continuing operations was $26.1 million, or 30 cents a share.

Sales fell slightly to $150.2 million from $152.5 million in the year-ago period.

Fairmont, with nearly 80 hotels in Canada, the United States, Bermuda, Mexico, Barbados and the United Arab Emirates, raised its 2002 earnings per share estimate to between $1.07 and $1.10 from $1 because it expects taxes to be about 30 percent this year, down from a previous estimate of 35 percent.

The company's shares have fallen about 16 percent so far this year on the Toronto Stock Exchange, in line with luxury hotelier Four Seasons' stock, which has fallen by the same amount.