FRPL Finance: COMPANY HISTORY

Fairmont fi led its fi rst prospectus in British Columbia with the superintendent of real estate in the
late 1970s and recently celebrated its 27th anniversary. From its beginnings at the Mountainside
Golf Course in Fairmont Hot Springs, B.C., business operations have grown to include more than
500 Five Star Award Winning luxury villas as well as luxurious houseboats and motor homes.
In 1978 developer Lloyd Wilder started building the fi rst resort in Canada to be constructed for
timeshare ownership. Fairmont Mountainside Villas sat on 22 acres in the interior of the Mountainside
Golf Course and included 116 cedar villas and a large recreation centre. The villas were still
under construction when Wilder sold an active interest in the timeshare marketing and development
company to the Fairmont founders, a group headed by Collin Knight and Douglas Morcom
who then completed the fi nal 36 Villas at the Mountainside project.
The new team sold the remaining units at Mountainside for Mr. Wilder, then purchased nearby
land and started developing the Riverside and Hillside Villas on the Riverside Golf Course. The
Company continues in 2005 to demonstrate its industry strength as it opens its fourth project,
Riverview Villas, also on the Riverside Golf Course, bringing on stream high end inventory of
1,632 interval weeks which are now ready for occupancy and sale.
In 2001, Fairmont acquired the Lake Okanagan Resort located near Kelowna, B.C. Between 1984
and 1988 the resort was operated by Canadian Pacifi c Hotels as a resort hotel complex situated
on approximately 300 acres of mountainside parkland with 4,700 feet (1,430 meters) of waterfront.
In 2005 Fairmont acquired the Costa Maya Reef Resort at Ambergris Caye in Belize. The Costa
Maya Reef Resort consists of 30 villas built in 10 buildings and consists of 10 - 2 bedroom villas
and 20 one bedroom villas - all with kitchens. There is also an amenities building with an indoor
and outdoor pool, a restaurant, lounge/games room, commercial kitchen and offi ces, a pool and
deck space, a palapa poolside bar, a 300 foot dock, a construction dock, a dive shop and a staff
housing building. There is also a guest water taxi shuttle and golf cart rentals as well as kayaking,
paddle boats, and sailboats. The property has approximately 750 feet of ocean beach frontage
with a protected concrete seawall and contains approximately 22 acres with ample future development
opportunity.
In 2005 Fairmont acquired time share vacation villas located at the Oasis Resort in Mesquite Nevada.
The acquisition represents over 500 time share intervals and the units are all one bedroom,
fully furnished vacation time share suites with kitchens. Mesquite is located at the Nevada, Utah
and Arizona border and is a popular stop for travelers driving to Las Vegas on Interstate Hi-way
15. The Oasis Resort is a full service resort with amenities, restaurants, golfi ng and casino operations.
There are several pools including a water park, go-cart track, mini golf and nearby gun club.
The area is well known for its many golf courses, national parks, and great weather.
Fairmont launched its Platinum Vacation Club in 2002, offering membership to all of its Fairmont
Vacation Villa and Lake Okanagan Resort interval Owners, giving Owners increased vacation
opportunities within Fairmont’s inventory. Fairmont Vacation Club also includes 11 new 60-foot
luxury houseboats, available only to club members and 16 houseboats available from the acquisition
of the Shuswap Lake Resort Club. The 11 new boats contain fi replaces and island kitchens
with two fridges. These boats also have hot tubs for eight, and a fuel transfer stations on the rear
deck.
The Makaha Resort & Golf Club on Oahu, Hawaii was purchased in 2004. Formerly owned by All
Nippon Airways Hotels and branded as a Sheraton Resort and Golf Club during the 1980s and
1990s, this Polynesian style resort consists of 173 hotel units, a convention centre, a restaurant
and an 18-hole championship golf course designed by William Bell the same architect of Torrey
Pines fame in California. This three hundred acre resort also includes luau grounds, tennis
courts, games room and massage services, a fi tness room, stocked Pro Shop, driving range,
putting and sand practice area, concierge tour assistance, lounge and entertainment, large swimming
pool with four fountains, shuffl eboard, basketball, craft and ukulele lessons, hiking trails and
nearby waterfalls.
Fairmont has exchange agreements with other resorts which enables it to offer other exchange
opportunities to its Platinum Vacation Club members. The corporate team continues to research
opportunities including sailboats, Harley Davidson motorcycles, fi shing/hunting camps, and the
development of drive-to locations in Canada and the U.S., as well as resorts in Mexico, West
Coast regions, and the Caribbean.