TORONTO(Reuters) - Fairmont Hotels and Resorts , newly spun off from conglomerate Canadian Pacific, posted a third-quarter loss Thursday from continuing operations, hurt by the fallout of the September 11 attacks.

Fairmont, which operates the Hamilton and Southampton Princess Hotels, along with 75 other luxury hotels and resorts across Canada, the United States, Mexico and Barbados, lost $99.4 million from continuing operations, compared with a profit of $30.3 million last year.

However, it had net income of $148.4 million, or $1.85 a share, as it received $151 million, a one-time gain, from the reorganisation of Canadian Pacific.

In the year-ago quarter, net income was $308.2 million, or $3.87 a share. Revenues for the quarter fell 6.4 percent to $154.8 million from $165.3 million in the year-ago period.

William Fatt, chief executive, said his company was well positioned to weather the aftermath of the September 11 attacks that have hit the airline and hotel industries hard as consumers have avoided travelling.

"Fairmont's strong cash flow and very low level of debt uniquely position us to pursue new opportunities for growth," Fatt said.

He said 2002 earnings before income taxes, depreciation and amortisation (EBITDA), a measure of profitability, would rise only modestly because of higher room availability after renovations.

Fairmont said its 2001 EBITDA would be in the range of $155 million to $165 million, or $5 million to $15 million in the fourth quarter, compared with $195 million in 2000 and $30 million in the fourth quarter of last year.

Fatt said Fairmont's revenue per room available was down slightly from year-ago levels before the September 11 attacks. After the attacks, it dropped 45 percent immediately, but has recovered since to between 15 percent and 20 percent of pre-attack levels.

"We anticipate continued improvements, although at a slower pace," Fatt said.

Shares of Fairmont have fallen nearly 25 percent since August 21, their first day of trading on a when-issued basis on the Toronto Stock Exchange. The shares, which formally started trading on the TSE on October 3, have fallen 15 percent since the September 11 attacks in the United States.