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Fairmont Hotels and Resorts will manage a new luxury resort on the the west coast of North Caicos in the Turks and Caicos Islands, the company said Tuesday.

The project will include a 150-room resort, a 150-room condo hotel, plus several residential developments, including a spa and golf course.

When the Fairmont Turks & Caicos opens in 2009, the company (TSX:FHR) will make an investment for a 19.9 per cent equity interest in the hotel.

The deal is expected to close in the first quarter of this year.

"Turks and Caicos is rapidly becoming a popular travel destination, and we are delighted to be a part of the expansion at the luxury end of the market," said William Fatt, Fairmont's CEO.

U.S. billionaire Carl Icahn recently launched a bid for majority control of Fairmont. He has offered $40 US a share for 51 per cent of the company.

Last week, Icahn signalled that he might be willing to bid for all of Fairmont provided he is granted access in advance to the company's books.