FAIRMONT HOTELS & RESORTS: Forbes.com reports that Fairmont Hotels & Resorts have a good base of assets, considering their EBITDA and capitalization.

Fairmont's top moneymaking properties, known as the "Big Eleven Assets," contribute approximately 65%-70% of the company's overall EBITDA (earnings before interest, taxes, depreciation and amortization). Its top-earning properties are Banff Springs, the Fairmont Scottsdale Princess and the Fairmont Kea Lani Maui. Three key Canadian properties--Banff Springs, Chateau Lake Louise and Whistler--contributed about 20% of total EBITDA in 2003, while the two Hawaiian properties, the Kea Lani Maui and the Orchid, were expected to contribute 16%-17% of 2003 EBITDA.

Legacy's market capitalization is $485 million, and it has been a weak performer. The new proposal, which Fairmont announced during its recent fourth-quarter conference call, may force it to consolidate Legacy onto Fairmont's balance sheet. Largely based on that announcement, Goldman Sachs analyst Steven Kent downgraded Fairmont stock from "outperform" to "in-line/neutral" on Feb. 2, but industry consensus seems to be that it's too soon to see how (and if) the ruling would apply to hotels.