Four Seasons Hotels and Resorts has announced that its longstanding shareholder, an affiliate of Cascade Investment, L.L.C., has entered into a definitive agreement to acquire a controlling interest in the company.
In the all-cash deal, Cascade will increase its existing 47.5 per cent stake to 71.25 percent by purchasing half of the existing 47.5 per cent stake owned by an affiliate of its long-term investment partner Kingdom Holding Company (KHC) for $2.21 billion, valuing Four Seasons at a $10 billion enterprise value.
Four Seasons Founder and Chairman, Isadore Sharp, through Triples Holdings, will retain his five per cent stake.
Cascade, Bill Gates' investment firm, first invested in Four Seasons in 1997 when the company was public.
This latest transaction marks a pivotal point in the evolution of Four Seasons, strengthening Cascade's commitment to growing the company.
"As we mark our 60th anniversary and look back on the profound impact that Four Seasons has had on luxury hospitality we also look forward with tremendous excitement and confidence in the future of the industry," said Four Seasons CEO John Davison, in a statement. "The unwavering support and partnership of our shareholders has and continues to be critical as we capitalize on growing opportunities to serve luxury consumers worldwide."
"Our Company is at yet another key moment in its storied history and the confidence of our shareholders in Four Seasons and our strategic vision help position the iconic Four Seasons brand for continued success.”
Decades of growth
Sharp founded Four Seasons in 1960 – the luxury hotel company now manages 121 hotels and resorts, and 46 world-class residential properties in 47 countries complemented by a pipeline of more than 50 projects at various stages of development.
Four Seasons shareholders took the company private in 2007, executing a strategy that expanded new opportunities for guests, residents, employees, and hotel owner partners worldwide.
Following the transaction and through its affiliate's ownership of its 23.75 per cent in Four Seasons, KHC said it remains committed to growing the brand.
The sale is expected to close in January 2022, pending regulatory approvals and the satisfaction of other customary closing conditions.