CP Hotels buys stake in U.S. hotel manager

Canadian Pacific Ltd., Canada's biggest conglomerate, has bought control of a hotel company that manages two of the most prestigious hotels in the United States, New York's Plaza Hotel and San Francisco's Fairmont.

Canadian Pacific Hotels & Resorts Inc. announced Monday it was teaming up with Kingdom Hotels (USA) Ltd. and Maritz Wolff & Co. to form Fairmont Hotel Management L.P. CP will have a 67 per cent stake in the company, Kingdom and Maritz will each have a 16.5 per cent interest.

The existing Canadian Pacific Hotels portfolio, including the recently acquired Princess Hotels, will be combined with seven Fairmont Hotels located in U.S. cities.

CP gave no details of the purchase price.

The Calgary-based company now runs a total of 73 hotels in Canada and the U.S. with a total of 30,000 rooms.