An affiliate of Cascade Investment, a longstanding shareholder Four Seasons Hotels and Resorts, has entered into a definitive agreement to acquire a controlling interest in the luxury hotel company. In the all-cash deal, Cascade will increase its existing 47.5 percent stake to 71.25 percent by purchasing half of the existing 47.5 percent stake owned by an affiliate of its long-term investment partner Kingdom Holding Co. for $2.21 billion, valuing Four Seasons at a $10 billion enterprise value. The KHC affiliate will retain a 23.75 percent stake in the company. Four Seasons Founder and Chairman Isadore Sharp, through Triples Holdings, will retain his 5 percent stake.
Cascade first invested in Four Seasons in 1997 when the company was public. The transaction aims to provide the hotel company with resources to accelerate growth and expand its strategic goals.
"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. "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."
Sharp founded Four Seasons in 1960, and the company’s shareholders took it private in 2007. Four Seasons now manages 121 hotels and resorts as well as 46 residential properties in 47 countries. It also has a pipeline of more than 50 projects at various stages of development.
The sale is expected to close in January 2022, pending regulatory approvals and the satisfaction of other customary closing conditions.