In October 2002, Legacy Hotels Real Estate Investment Trust agreed to purchase the Four Seasons Olympic, a…
In October 2002, Legacy Hotels Real Estate Investment Trust agreed to purchase the Four Seasons Olympic, a Five Diamond hotel in Seattle. The purchase was subject to arbitration proceedings between the current hotel owner and manager as well as a number of other conditions. Legacy has been advised that a settlement has been reached today on these arbitration proceedings. Subject to the satisfaction of customary closing conditions and third-party approvals, Legacy will acquire the Olympic Hotel during the third quarter.
Fairmont, the luxury hotel management company of Fairmont Hotels & Resorts Inc., will operate the property, which will be officially flagged The Fairmont Olympic Hotel, Seattle. Legacy has entered into an agreement with Fairmont for a long-term management contract and Fairmont has agreed to make a payment to Legacy to acquire this contract. The terms of the agreement have been approved by Legacy`s Independent Trustees.
The purchase price for the property is approximately US$100 million, or Cdn$135 million, subject to adjustments and closing costs. Legacy expects to use mortgage financing and lines of credit to finance the purchase of the hotel.
Commenting on the transaction, Neil J. Labatte, President and Chief Executive Officer of Legacy, said, We are pleased to be adding such a high-quality heritage asset to our portfolio. This Seattle hotel is an exceptional property in an important market and represents the qualities we seek for our portfolio of luxury hotels. Added Mr. Labatte, This irreplaceable property is a natural complement to Legacy`s strong Fairmont presence in both Vancouver and Victoria, British Columbia.
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