Two local hotels and their employees are set to benefit from the closure of a deal to combine the management of the Canadian Pacific Hotels and Fairmont Hotels.

And an extensive advertising campaign kicks off tomorrow in both the print and broadcast media.

The new entity, Fairmont Hotels & Resorts, is the largest luxury hotel management company in North America with 34 city centre and resort properties.

Canadian Pacific Hotels holds a 67 percent interest in the new brand while former Fairmont Hotel partners Maritz Wolff and Kingdom Hotels hold 16.5 percent each.

The hotel collection combines seven landmark Fairmont hotels, including the Fairmont San Francisco and The Plaza in New York, with 27 hotels from the Canadian Pacific portfolio, including Banff Springs and Le Chateau Frontenac.

Also included in the deal are two Bermudian hotels, the newly-named Fairmont Southampton and Fairmont Hamilton Princesses, with some 1,000 rooms between them.

The Canadian Pacific Hotels name will continue to be used in the Canadian market place as part of the Fairmont Hotels & Resorts brand.

Meanwhile all new properties as well as existing Princess properties will incorporate Fairmont into the hotel name.

Fairmont Hamilton Princess vice president and general manager Michael Kaile yesterday explained what the deal meant for Bermuda.

"What this means is that if you look at our greater majority market place, the US, we have now got hotels there.

"They have the same brand name as we do and are in our huge marketplaces -- New York and Boston -- and also in Dallas, New Orleans, San Jose, San Francisco and Chicago.

"Having the Fairmont name out there and connected to us will help our hotels get their names out there.'' Mr. Kaile stressed that employees were set to benefit also.

"They know they are part of a growing and very dynamic hotel company which certainly provides additional opportunities for them,'' he said.

And benefits provided to employees previously would remain in place, he reassured.

"Here with Canadian Pacific we have very established training programmes underway and those are going to continue,'' Mr. Kaile said.

Fairmont Hotels & Resorts chairman and Chief Executive Officer William Fatt stressed: "Combining the strengths of such similar companies and building on the base of the Fairmont brand, which has such high visibility in the US, is an important component of our company's competitive advantage as we expand.'' He added: "It's very unusual for a management company to start out with 34 luxury hotels and resorts in its portfolio, including such a large number of landmark properties.

"This puts the new management company in an immediate leadership position in the hospitality industry and allows us to offer an unparalleled choice for our guests, travel agents and meeting planners.'' Mr. Kaile noted: "If we were to grow our hotel group hotel by hotel, it would be a very long process.

"Acquiring a group like Fairmont is a marriage made in heaven. People will find the hotels from the two groups are a real fit.''